dominica national export strategy 2009-2013 · pdf file3.3 national swot analysis ... oecs...

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June 1, 2010

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TABLE OF CONTENTS

GLOSSARY OF TERMS.................................................................................................................... v

DESIGN MANAGEMENT TEAM ...................................................................................................... viii

EXECUTIVE SUMMARY ................................................................................................................... ix

1. INTRODUCTION ........................................................................................................................... 1

1.1 The Strategic Partnership......................................................................................................... 1

1.2 The NES Rationale .................................................................................................................. 1

1.3 The NES Vision and Objectives ............................................................................................... 2

1.3.1 The Vision ......................................................................................................................... 2

1.3.2 Objectives ......................................................................................................................... 2

2.0 THE DOMINICA NES DESIGN METHODOLOGY AND PROCESS.............................................. 4

2.1 The Process ............................................................................................................................ 4

2.2 The Methodology ..................................................................................................................... 4

3.0 SUMMARY STATUS OF DOMINICA‟S EXPORT SECTOR ......................................................... 6

3.1 Economic and Social Context................................................................................................... 6

3.2 Export Performances ............................................................................................................... 7

3.3 National SWOT Analysis ........................................................................................................ 11

4. STRATEGIC WEIGHTINGS AND PRIORITIES ........................................................................ 13

4.1 Weighting of Perspectives ...................................................................................................... 13

4.2 Setting of Sector Priorities ...................................................................................................... 13

5.0 STRATEGIC DEVELOPMENT ISSUES ............................................................................... 16

5.1 The Vision.............................................................................................................................. 16

5.2 Issues .................................................................................................................................... 16

5.3 Strategic Considerations ........................................................................................................ 16

5.4 Recommendations ................................................................................................................. 17

5.5 OMTI: The Development Perspective Key Objective .............................................................. 18

6.0 CROSS –CUTTING STRATEGIC ISSUES ........................................................................... 20

6.1 The Competitiveness Perspective..................................................................................... 20

6.1.1 Border – In Gear: Supply Side: Capacity Development Issues – Human Capital Capacity 20

6.1.2 OMTI: The Competitiveness Perspective Border-In Key Objective ................................... 22

6.1.3 The Border Gear: Supply Side: Quality of the Business Environment ............................... 25

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6.1.4 OMTI: The Competitiveness Objective: Border Key Objectives ....................................... 27

6.1.5 The Border – Out: Demand Side Constraints: To Ensure Demand Led Export Development ................................................................................................................................................ 31

6.1.6 OMTI: The Competitive Perspective: Border-Out Key Objectives ..................................... 32

6.2 Export Business Competency ................................................................................................ 34

6.2.1 OMTI: Clients Perspectives: Business/Export Competency Key Objectives...................... 35

6.3 Trade Information................................................................................................................... 36

6.3.1 OMTI: Clients Perspective: Trade Information Key Objectives ......................................... 37

6.4 Trade Finance........................................................................................................................ 38

6.4.1 OMTI: Clients Perspective: Trade Finance Key Objectives .............................................. 40

6.5 Quality Management, Packaging and Labelling ...................................................................... 42

6.5.1 OMTI: Clients Perspective: Quality Management, Packaging and Labelling Key Objectives ................................................................................................................................................ 44

7.0 INSTITUTIONAL FRAMEWORK FOR MANAGEMENT AND IMPLEMENTATION OF THE NES 45

7.1 The Strategy Support Network (SSN) ..................................................................................... 45

7.1.1 OMTI Institutional Perspective: Strategy Support Network Key Objective ......................... 46

7.2 Services Delivery Network (SDN) ........................................................................................... 47

7.2.1 OMTI: Institutional Perspective: Services Delivery Network Key Objectives ..................... 48

8.0 FINANCING THE NES ......................................................................................................... 49

Table 8:1 – NES Indicative Summary Budget in EC$ for Major Expenditure Items Over First 4 Years ....................................................................................................................................... 49

Table 8:2 - NEC Budget for Year 1 in ECD ............................................................................... 50

9.0 NES PRIORITY SECTORS .................................................................................................. 51

9.1 Sector Strategy: Agriculture ................................................................................................... 52

9.1.1: Introduction ................................................................................................................... 52

9.1.2: Vision ....................................................................................................................... 52

9.1.3: Key Issues Confronting The Sector ................................................................................ 53

9.1.4: Mapping the Composite Current Value Chain for Selected Products .............................. 57

9.1.5: Mapping Composite Future Value Chain for Target Markets .......................................... 59

9.1.6: OMTI Matrix ................................................................................................................. 60

9.2 Sector Strategy: Agro Processing ........................................................................................... 71

9.2.1: Introduction ................................................................................................................... 71

9.2.2: Vision ............................................................................................................................. 71

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9.2.3: Key Issues Confronting the Sector................................................................................. 72

9.2.4: Mapping the Current Value Chain .................................................................................. 74

9.2.5: Mapping the Future Value Chain ................................................................................... 76

9.2.6: OMTI Matrix .................................................................................................................. 77

9.3 Sector Strategy: Cultural Industries ........................................................................................ 90

9.3.1: Introduction ................................................................................................................... 90

9.3.2: Vision ............................................................................................................................. 90

9.3.3: Key Issues Confronting the Sector................................................................................. 91

9.3.4: Mapping the Current Value Chain .................................................................................. 95

9.3.5: Mapping the Future Value Chains.................................................................................. 96

9.3.6: OMTI Matrix ................................................................................................................... 99

9.4: Sector Strategy: Natural Resources and Energy .................................................................. 110

9.4.1: Introduction ................................................................................................................. 110

9.4.2: Vision ........................................................................................................................... 111

9.4.3: Key Issues Confronting the Sector............................................................................... 112

9.4.4: Value Chain Analyses ................................................................................................. 114

9.4.5: OMTI Matrix ................................................................................................................ 121

9.5 Sector Strategy: Professional Business Services .................................................................. 127

9.5.1: Introduction ................................................................................................................. 127

9.5.2: Vision ........................................................................................................................... 127


9.5.4: Mapping the current value chain .................................................................................. 131

9.5.5: Mapping the Future Value Chain ................................................................................. 132

9.5.6: OMTI Matrix ................................................................................................................ 133

9.6 Sector Strategy, Tourism...................................................................................................... 144

9.6.1: Introduction .................................................................................................................. 144

9.6.2 Vision ............................................................................................................................ 144


9.6.4: Mapping the Current Value Chain ................................................................................ 148

9.6.5: Mapping the Future Value Chain .................................................................................. 150

9.6.6: OMTI Matrix ................................................................................................................. 151

ANNEXES ..................................................................................................................................... 169

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Annex 1: Sectoral Contributions to GDP..................................................................................... 169

Annex 2: Summary External Account ......................................................................................... 170

Annex 3: List of Core Design Team Members ............................................................................ 171

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GLOSSARY OF TERMS

ALBA Bolivarian Alternative for Latin America and the Caribbean

BDS Business Development Services

BOP Balance of Payments

CARIBCAN Caribbean Canada Trade Agreement

CARICOM Caribbean Community

CARIFORUM Forum of Caribbean States of the ACP

CBI Caribbean Basin Initiative

CBOs Community Based Organisations

CIDA Canadian International Development Agency

COMSEC Commonwealth Secretariat

CBTA Caribbean Basin Trade Partnership Act

CPI Consumer Price Index

CRNM Caribbean Regional Negotiating Machinery

CROSQ Caribbean Regional Organization for Standards & Quality

CSME CARICOM Single Market and Economy

CSO Central Statistical Office

DAAS Dominica Academy of Arts and Science

DABA Dominica Agri-business Association

DBOS Dominica Bureau of Standards

DEXIA Dominica Export Import Agency

DDA Discover Dominica Authority

DAIC Dominica Association of Industry and Commerce

DHBA Dominica Herbal Business Association

DHA Dominica Hucksters‟ Association

DHTA Dominica Hotel & Tourism Association

DNCW Dominica National Council of Women

DRP Draft Response Paper

DSC Dominica State College

DSIF Dominica Social Investment Fund

DWA Dominica Water Sports Association

DYBT Dominica Youth Business Trust

EC European Commission

EU European Union

ECCU Eastern Caribbean Currency Union

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ECU Environmental Coordinating Unit

EPA Economic Partnership Agreement

FSU Financial Services Unit

FTA Free Trade Agreement

GDP Gross Domestic Product

GoCD Government of the Commonwealth of Dominica

HR Human Resource(s)

IBMs Inward Buyers Missions

ICT Information and Communications Technology

IDA Invest Dominica Authority

IP Intellectual Property

IR Inception Report

IRC Independent Regulatory Commission

ITC International Trade Centre

MP Man Power

MOT Ministry responsible for Trade, Industry, Consumer and Diaspora Affairs

MOTOUR Ministry responsible for Tourism

MOPORT Ministry responsible for Ports

MOENRG Ministry responsible for Energy and Public Utilities

MOENV Ministry responsible for the Environment

MOTELE Ministry responsible for Telecommunications

MOLEGA Ministry responsible for Legal Affairs

MOFIN Ministry responsible for Finance

MOAGRI Ministry responsible for Agriculture

MOCARIB Ministry responsible for Carib Affairs

MOGEN Ministry responsible for Gender Affairs

MOEDU. Ministry responsible for Education

MOWKS Ministry responsible for Works

MOFORA Ministry responsible for Foreign Affairs

MOYOU Ministry responsible for Youth Affairs

MOCDEV Ministry responsible for Community Development

MOECON Ministry responsible for Economic Planning

MOHEAL Ministry responsible for Health

MONATS Ministry responsible for National Security

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MOCUL Ministry responsible for Culture

MOLAND Ministry responsible for Lands and Housing

NAO National Authorising Office for the European Development Fund

NCDT National Core Design Team

NCTE National Centre of Testing Excellence

NDC National Development Corporation

NDFD National Development Foundation of Dominica

NEBI National E-Business Incubator

NEC National Export Council

NES National Export Strategy

NGO Non Governmental Organisation

NTBs Non Tariff Barriers

OECS Organisation of Eastern Caribbean States

OMTI Objectives, Measures, Targets, Initiatives

PPP Public Private Sector Partnership

RDF Regional Development Fund

PSIP Public Sector Investment Programme

R & D Research and Development

SBU Small Business Unit

SQAM Standards, Quality, Assurance, Metrology

SHAPE Society for Heritage, Architectural Preservation and Enhancement

TA Technical Assistance

UK United Kingdom

US United States

WP Work Programme

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DESIGN MANAGEMENT TEAM

Cover images courtesy the Discover Dominica Authority and DEXIA

Name Sector

Owen Skae Technical Leadership, ITC

Gregoire Thomas Overall Navigator/ General Manager DEXIA

Darwin Telemacque Navigator Agriculture

Garner Eloi Navigator Agro Processing

McCarthy Marie Navigator Cultural Industries

Sylvia Charles Navigator Energy and Natural Resources

Delbert Parris Navigator Professional Business Services

Lolita Raffoul Navigator Tourism

Lucilla Lewis Local Project Consultant

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EXECUTIVE SUMMARY

1.0 The NES Rationale

The NES is a plan of action aimed at achieving the transformation of Dominica‟s export sector. Through this programme, the sector hopes to double its contribution to national income within the medium term, that is, from 2010 to 2014.

The strategy seeks to:

Create a more systematic and coordinated approach to export development by establishing a central export development management and execution framework, which includes procedures for monitoring outcomes. Such a framework would allow for enhanced synergies especially in promotion planning.

Undertake detailed value chain analysis to identify priority sectors with maximum

potential.

Establish a documented policy and approach for developing exports of goods and services that have been identified to have maximum growth potential.

Position Dominica to respond effectively to adverse changes in the international economic environment exacerbated by trade liberalization and the erosion of preferential trade regimes.

2.0 NES Design Process

The strategy design was undertaken within the framework of the Export Strategy development process and methodology of the International Trade Centre (ITC). The ITC provided training in the use of its methodology to the National Core Design Team (NCDT). Every milestone in the design process involved stakeholder consultation either at the NCDT level or at the level of NCDT subcommittees. Importantly, there was complete stakeholder involvement in the design of respective subsector strategies through a comprehensive process of sectoral subcommittee consultations over a period of five months. The NCDT comprised stakeholders from the public and private sectors. Included from the private sector were shipping agents, employers‟ representatives, manufactures, producers of agricultural goods, professional business providers, and key players in the cultural industries and in the tourism sector. In addition to the ITC, which provided technical guidance, the European Commission and the Government of Dominica provided financial support for the design of the NES.

3.0 The Perspectives

While recommending action to address competitiveness issues as its highest priority, the NES recognizes sustained export growth as its ultimate developmental objective. This is

reflected in the NES vision: “To Achieve a Diversified and Competitive Export Sector driven

by Innovation and a Strong Spirit of Entrepreneurship to Produce High Value Goods and

Services, for Sustained Improvements in the Standard of Living for all Dominicans”.

Development goals of the NES include:

Employment and income creation

Development of rural and disadvantaged groups (the latter including the youth and the Carib population)

Gender equality

Environmental sustainability Other considerations in the NES are related to clients‟ needs and the institutional framework for effective implementation of the NES.

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4.0 Priorities and Strategies

The following six sectors have been given priority for implementation in the medium term: Goods:

Agriculture: root crops, coconut, peppers, coffee

Agro-processing: condiments, essential oils, herbs and spices, beverages

Energy and natural resources: geothermal, water, pumice and quarrying Services:

Cultural Industries: music (live and recorded), performing arts

Professional Business Services: Engineering, Architecture, Construction and construction related services

Tourism: farm tours, hiking, diving, spas and mineral pools, heritage and cultural tourism

Sector priorities were informed by national policy statements/positions and literature review and were finally decided on at the NCDT level, while subsector priorities were selected by stakeholder subcommittees based on value chain and value option analysis. The following major issues were considered:

1. Trends in international market demand and market opportunities in FTAs entered into

and being negotiated – to ensure market led planning.

2. A competitive advantage within the CSME and or within the wider global market – to

ensure international competitiveness.

3. The greatest potential for value acquisition, retention, acquisition, addition, creation

and distribution – indicating scope for diversification of the export base.

From the design of the respective sector strategies, by stakeholder subcommittees, the following crosscutting priorities emerged:

1. Capacity Development including human capital development 2. Infrastructure 3. Trade facilitation 4. Cost of Doing Business 5. Trade Promotion and National Branding 6. Business and Export Competency 7. Trade Information 8. Trade Finance 9. Quality management and Packaging and labelling

The strategy particularly focuses on issues related to capacity development through strong PPP which ensures sustainability by training of trainers, effectiveness through careful choice of modes of training, efficiency by building on existing and ongoing initiatives/programmes, and participation of private training institutions/consultants. The strategy emphasizes curriculum development to increase emphasis on vocational training, training in performing arts, music, and entrepreneurship. Capacity development is also addressed through a strategy to enhance transparency in the incentives regime offered to investors and also the urgent establishment of a national investment strategy. The strategy to address the cost of doing business and the facilitation of export trade in Dominica emphasizes timely completion of the customs modernization project, regional initiatives to attract investment in an inter OECS ferry service, effective regulatory frameworks in the telecommunication and electricity sectors to ensure efficiency, and continued port development to include construction of an international airport.

Marketing and promotional strategic initiatives include the development of a Dominica Brand, increased engagement of embassies and consulates overseas and involvement of Diaspora

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groups to provide in-market support. Another fundamental strategic initiative will include increased budgetary allocations for marketing and promotion by the public and private sectors.

In addition, the strengthening of the trade information and promotion capacity at DEXIA is recommended to address challenges related to access to targeted product and market information on a timely and ongoing basis by all categories of exporters.

Strategies to address the challenges faced by businesses to access credit and capital include: the establishment by Government of a guarantee fund at the AID Bank, strengthening of the Dominica Youth Business Trust (DYBT), introduction of donor-supported seed capital fund schemes, and strengthening of the projects section of the AID Bank to allow for more effective monitoring of project implementation to ensure project viability and servicing of loans by clients.

The critical issue of quality management is addressed by a strategy to support development of national standards and enhancing laboratory facilities. Effective functioning of the Fresh Produce Pack Houses and early commissioning of the National Centre for Testing Excellence (NCTE), now under construction, are also supported in the strategy.

Investments to utilize Dominica‟s potential in geothermal energy and investments in ICT training are overarching strategies in addressing all of the crosscutting priority issues.

5.0 Institutional Arrangements for NES Implementation The strategy includes a proposal for the establishment of a National Export Council (NEC), with strong public and private sector involvement, to monitor management and implementation of initiatives and evaluate outcomes of the NES. The NEC will comprise of representatives of umbrella trade associations from respective priority sectors and representatives of key public sector Ministries and departments. A restructured DEXIA that will be modified to function as a full-fledged Trade Promotion Organization (TPO) will provide support to the NEC.

6.0 Resources for the Strategy The Government of Dominica, the private sector and donors are expected to finance the implementation of the NES. It is however expected that resources from donors and friendly Governments under the Aid for Trade mechanism will be a major source of financing. A significant level of financing of interventions is also expected under the EU CARIFORUM EPA in particular from the Regional Development Fund (RDF).

Line Ministries in the Strategy Support Network (SSN) are expected to include resource requirements for implementation of NES interventions in their annual budgetary submissions to the Ministry of Finance.

Government is expected to meet the financial implications of a restructured DEXIA and the establishment of the NEC and its Secretariat.

An indicative budget of major expenditure items is estimated at EC$3,166,013,520 of which EC$3b is expected to finance development of the geothermal sector and sea and air ports development.

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7.0 Monitoring and Evaluation The NEC, with technical guidance from the ITC, and, supported by the NEC Secretariat and a restructured DEXIA will monitor and evaluate the implementation of initiatives and outcomes of the NES.

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1. INTRODUCTION

1.1 The Strategic Partnership

The Dominica National Export Strategy (NES) is the result of a partnership between the Government of the Commonwealth of Dominica (GoCD), Office of the National Authorizing Office (NAO) of the European Development Fund (EDF) and the International Trade Centre (ITC), working collaboratively over a ten-month period. The GoCD provided the leadership and management framework for an interactive process of consultations with stakeholders from the public and private sectors to assess the challenges faced by Dominica‟s export sector, agree on national, sectoral and sub-sectoral priorities, set visions and propose strategies for achieving the articulated visions. The ITC provided the technical leadership and ongoing training in the use of its NES design methodology. The NAO provided financial and technical support.

1.2 The NES Rationale

Dominica‟s experience supports the thesis that participation in international trade is one of the key factors influencing prosperity – the positive correlation between trends in export earnings and economic growth performances. It is also a reasonable conclusion from Dominica‟s experiences that globalization as a result of its impacts on trade performances and implications for economic growth and Government‟s revenue base, has impeded the ability of Dominica and other Small Island Developing States (SIDS) to reduce poverty. In defining a response to these negative impacts of globalization, the question policy makers in Dominica and other SIDS in the OECS sub-region must ask is, “Is there the option of staying out of the global economy”? If not, the key policy issue becomes, “How can Dominica participate in global markets and the global economy in a way that ensures sustainable income, growth and development”?

The development of a National Export Strategy, through its focus on analysis of key issues and on priority sectors with maximum growth and development potential, provides a

coordinated framework for effective management and implementation of interventions. Through its Growth and Social Protection Strategy (GSPS) and the mandate of the Ministry of Trade, Dominica espouses export development as a key growth pillar in the new global

market environment it faces. However, the existing management framework of the sector does not allow for adequate coordination of implementation of interventions based on priorities and resource availability, to achieve the goals set for the sector. For example, in the services sector, except for tourism, there is no deliberate strategy in place for deriving the growth potential identified in education, health, construction, ICTs, and cultural industries. A well-designed national export strategy would address these issues by:

Establishing a more systematic and coordinated approach to export development by creating a central export development management and execution framework, with procedures for monitoring outcomes. Such a framework would allow for enhanced synergies especially in promotion planning.

Implementing detailed value chain analysis to identify priority sectors with maximum

potential. This process would identify priorities at the sectoral and sub-sectoral levels, and allow Dominica to identify opportunities for targeting various market segments and to allocate scarce resources to these segments.

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Establishing a documented national policy and approach for developing exports of goods and services, which have been identified as displaying maximum growth potential.

Enabling Dominica to be better positioned to respond to changes in the international economic environment that is influenced by trade liberalization and dismantling of barriers to trade.

1.3 The NES Vision and Objectives

Out of an interactive consultative process within the National Core Design Team (NCDT), the following vision and objectives were crafted for the NES:

1.3.1 The Vision

1.3.2 Objectives

The strategic objectives of the NES are to:

Address the underlying weakness in the economy relating to trade competitiveness –in particular the high production costs and related low productivity

Expand production of goods and services for export markets in order to increase foreign exchange earnings and to address the chronic visible trade and external current account deficits

Address developmental impacts of interventions, by linking the expected enhancement in trade competitiveness, with positive impacts on economic and social development in Dominica in the Strategy‟s development perspective

Create a satisfactory institutional framework for continuous development of the export sector

Foster sustainable market based, demand focused marketing efforts that target priority goods and services sectors

Ensure strong private/public stakeholder partnerships in development of Dominica‟s export sector

Rationalise allocation of scarce resources for financing development of the sector

Position Dominica to maximise benefits of market openings in FTAs entered into, specifically the CSME and the EU CARIFORUM EPA

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The diagram below, based on the ITC‟s Management Framework, identifies the key priorities addressed in the strategy.

DEVELOPMENT

Improved TOT i.e. E/I to ↑

Increased jobs

Reduced Poverty

In an Environmentally Sustainable Manner

No 1:

What do you want the

NES to achieve?

No 2:

Which productive sectors have the

most potential to exploit market

opportunities which achieve your

development objectives?

CLIENT

A

gri b

usi

ne

ss

To

urism

Pro

fess

ion

al

Bu

sin

ess

Se

rvic

es

Priority sectors

analysed using Value

Chain analysis

Key Business and

Trade Support

Services

No 3:

What services are key

to assist exporters

achieve objectives?

COMPETITIVENESS

No 4:

What „macro‟ priorities need

to be addressed to enable

sectors to be more

competitive?

Border In

(Supply Side):

Human Capital

Research & Development

Border

(Cost of Doing Business):

Infrastructure

Trade Facilitation

Border Out (Demand Side):

Trade Agreements

Branding

These macro priorities

have direct and indirect

implications for the

productive and cross-

cutting sectors ability to

deliver

INSTITUTIONAL

Strategy Support

Network:

Key Ministries

Chamber of Commerce

Sector Associations

No 5:

What is the best way to

get all of our organizations

working together?

Services Delivery

Network::Training

Market Research

Quality Accreditation

NATIONAL

EXPORT

COUNCIL

No 6:

How do you propose to

manage and monitor its

implementation?

SSN determines how

the competitiveness

priorities are aligned

6 KEY QUESTIONS FOR EXPORT

STRATEGY MAKERS?

SDN determines how

available and cost

effective solutions for

exporters are

Cu

ltura

l In

du

strie

s

En

erg

y &

Na

t. R

eso

urc

es

Trade Information

Trade Finance

Quality Management

Business Competency

Transportation

Packaging and Labelling

C L I E N T

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2.0 THE DOMINICA NES DESIGN METHODOLOGY AND PROCESS

2.1 The Process

In June 2007, Dominica launched the NES design process with technical assistance from the ITC and the Commonwealth Secretariat. Subsequent circumstances led to a slowdown in the work programme of the NCDT until recommencement of activities in September 2008 when resources were made available by the European Commission and the Government of Dominica. The strategy design was undertaken within the framework of the ITC‟s export strategy development process and methodology. Training in its use was provided to the NCDT by the ITC. Every milestone in the design process involved stakeholder consultation either at the NCDT level or at the level of NCDT subcommittees. Importantly there was complete stakeholder involvement in the design of respective subsector strategies through a comprehensive process of sectoral subcommittee consultations over a period of five months. The NCDT comprised stakeholders from the public and private sectors. Included from the private sector were: shipping agents, employers‟ representatives, manufacturers, producers of agricultural goods, professional business providers, and key players in the cultural industries and in the tourism sector. Attached in Annex 4 is a list of the NCDT membership.

2.2 The Methodology

The design was based on the four building blocks of the ITC‟s process and methodology:

1. Public-Private Sector Partnership (PPP)

2. The Four Gears of Export Strategy

3. Analysis of the Value Chain

4. The Management Framework

The scope of the Strategy and issues addressed are defined within the context of the ITC Four Gears of Strategy as follows:

1. The Development Perspective which deals with employment, poverty alleviation, development of disadvantaged groups, gender equality, and environmental sustainability

2. The Competitiveness Perspective which covers the supply side, referred to as the Border-in Gear, the Border Gear, and also addresses the Border-out Gear referred to as the demand side.

The Border-In Gear addresses capacity development, capacity diversification and human

capital development issues

The Border Gear addresses infrastructure, trade facilitation and cost of doing business

The Border-Out Gear addresses market access, in-market support services, and national

promotion.

The following is a diagram of the Four Gears of Strategy taken from the ITC export strategy design methodology.

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In addition to the Four Gears of strategy, – 1. Development; 2. Border–In; 3. Border; and 4. Border–Out, – the client‟s perspective and institutional perspective are addressed to ensure full stakeholder ownership of the NES.

1. The Client’s Perspective highlights the sector‟s and client‟s focus and discusses

business competency, trade information, trade finance, quality management, and labelling and packaging.

2. The Institutional Perspective discusses the Strategy Support Network(SSN), and the Service Delivery Network(SDN)

The institutional perspective addresses establishment of a management framework, which ensures that implementation of the NES, is effectively managed and coordinated and importantly, ensures that the necessary resources will be allocated for its implementation. A detailed plan of action that specifies measures and targets to assess impacts as well as a management matrix will be included in the NES.

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3.0 SUMMARY STATUS OF DOMINICA’S EXPORT SECTOR

3.1 Economic and Social Context

The Dominican economy has recorded slower growth rates since the 1990s compared to the 1980s.This slowdown in the economy was due in large part to the erosion of preferential trading arrangements for bananas, the major export industry, in its major export market in the UK. This untenable situation exacerbated challenges already presented by Dominica‟s small size and vulnerability to external shocks and negative effects of climate change. Against the background of stagnant growth and lack of employment opportunities, Dominica has experienced sustained emigration flows of skilled and unskilled youth. This, in addition to a declining birth rate, has led to an increase in the average population age and a relatively low population density of 96 per sq.km. Comparatively, St. Kitts and Nevis has a population density of 163 per sq. km and St. Lucia 264 per sq. km. The above demographics, creates diseconomies of scale in the private sector and in the provision of Government services, and presents the challenge of availability of manpower to continue the development process.

Table 3.1 below shows that over the period 2002 to 2007, there was a weakening in real

growth in GDP in 2007 compared to the preceding three years. However, the current account savings performance of Central Government has improved since 2005.

Over the period 2002 to 2007, annual GDP growth rates averaged 1.2%. This sluggishness in the economy over the period was largely attributable to developments in the agricultural sector. This sector recorded an annual average decline of 0.6% over the period and as a contributor to real GDP declined from 18.3% in 2002 to 16% in 2007. The performance of the agricultural sector in 2007 was negatively affected by the passage of Hurricane Dean. The data on trends in sectoral contributions to GDP indicate that offsetting impacts on total GDP came from services such as construction, banking and insurance, wholesale and retail trade and real estate. The data in Annex 2 indicates that agriculture contributed 16% of

GDP in 2007 of which crops accounted for 11.3%; in that year Government services emerged as the highest contributor to GDP at 19.4%. The hotels and restaurants sector, the proxy for tourism in the national accounts system, recorded mixed annual growth performances over the period with the contribution to GDP remaining under 2%.

Table 3:1 – Selected Indicators 2002 to 2007 Indicators 2002 2003 2004 2005 2006 2007

GDP at Constant prices (Growth Rates %) -5.08 0.1 3.05 3.33 3.81 1.82

GDP at Market Prices EC$M 688.1 709.65 770.08 807.68 858.89 911.29

Central Government Current Account Balance

-14.58 -27.21 1.51 17.67 24.79 31.2

Gross domestic investment EC$ 25.0 25.5 28.6 30.1 27.0 26.1

Gross national savings EC$M 19.0 19.7 21.2 8.0 21.8 17.3

Population 70,363 70,340 70,340 70,200 70,100 69,005

Consumer Price Index (CPI) Annual change (%)

0.18 1.42 2.42 1.67 2.61 3.23

Trade per capita 10,721 10,584 11,691 12,5128 13,100 14,596

Exports to GDP (%) 16.7 15.2 14.5 13.8 13.0 10.9

Imports to GDP (%) 45.6 48.7 50.9 55.4 52.5 57.9

FDI to GDP (%) 8.1 12.2 9.6 10.8 9.7 18.0

Exports of goods and services as ratio (%) to GDP

48.3 45.0 45.7 43.2 44.5 40.1

Imports of goods and services as ratio (%) to GDP

61.3 59.9 61.0 65.5 62.7 70.4

Sources: ECCB Publications, CSOs publications, GSPS, and author‟s calculations

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3.2 Export Performances

Dominica‟s export mix remains extremely narrow and is typically limited to low value-added products. Dependence on international intermediaries is high; margins are low and susceptible to swings in prices and terms of trade e.g. bananas, soaps.

Table 3: 2 below indicates sharp deterioration in Dominica‟s external current account over

the 5-year period 2002 to 2007 with the deficit doubling from $127.9m to $256.5m. This deterioration occurred despite a contraction in outflows of income to foreign investors, a sharp increase in inflows of remittances and significant growth in net inflows on the services account. The deterioration was associated with the merchandise trade deficit, which more than doubled from $158.61m in 2002 to $358.09 in 2007, as rapid growth in the import bill was accompanied by steadily declining export earnings. In the services account, on the other hand, growth in receipts from travel, and miscellaneous business services served to offset increased outflows on the transportation and insurance accounts and resulted in incremental growth in the surplus over the period.

Table 3:2 – Summary External Current Account (EC$M)

2002 2003 2004 2005 2006 2007

Current Account Balance -127.86 -143.57 -162.58 -205.42 -147.92 -256.50

Goods and Services -89.28 -105.10 -117.81 -180.28 -155.45 -270.43

Goods -158.61 -193.27 -229.08 -278.17 -277.05 -358.09

Merchandise* -161.17 -196.00 -233.21 -282.16 -284.57 -365.31

Services 69.33 88.17 111.27 97.89 125.80 87.66

Transport -35.23 -40.27 -42.82 -61.77 -57.19 -73.76

Travel 98.32 117.25 138.94 127.68 162.83 136.98

Insurance -7.94 -6.60 -10.46 -10.75 -12.77 -14.76

Other business Services 20.19 25.63 26.24 45.12 33.13 39.35

Income -75.41 -72.94 -90.00 -78.24 -40.51 -41.74

Transfers 36.83 34.47 45.23 53.10 52.85 55.68

Source: ECCB BOP Annual Publications *Imports are included on the F.O.B. basis.

The following table (Table 3.3) shows trends in the contribution of banana exports to total

domestic export earnings, which largely accounted for the sluggish overall economic performances. The table further shows that despite the declining trend in banana export performance it remained second place only to soaps as a contributor to Dominica‟s visible export earnings.

8

Table 3:3 – Percentage Contribution of Main Items to Domestic Exports

Main Items 2007 2006 2005 2004

Value % Value % Value % Value %

Soaps; cakes, bars/tablets 26,700 27.6 28,271 25.9 26,930 25.7 30,082 28.1

Bananas 13,637 14.1 20,223 18.5 17,380 16.6 19,576 18.3

Toothpaste 9,470 9.8 15,053 13.8 15,128 14.5 13,800 12.9

Pumice sand and aggregate 10,882 11.2 7,492 6.9 7,299 7.0 6,136 5.7

Disinfectant 3,228 3.3 4,900 4.5 4,201 4.0 4,720 4.4

Paints and Varnishes 9,113 9.4 7,339 6.7 7,693 7.4 5,047 4.7

Plantains 3,596 3.7 3,595 3.3 3,693 3.5 4,255 4.0

Pepper and other sauce preparations

1,380 1.4 1,495 1.4 1,029 1.0 1,301 1.2

Bay oil 1,513 1.6 2,274 2.1 1,371 1.3 1,312 1.2

Liquid detergents and other detergents

1,275 1.3 1,429 1.3 1,545 1.5 1,790 1.7

Dishwashing liquids 7 0.0 2,948 2.7 2,237 2.1 1,821 1.7

Dasheen 1,869 1.9 1,909 1.7 2,383 2.3 2,620 2.4

Oranges 1,512 1.6 990 0.9 1,143 1.1 1,236 1.2

Avocadoes 1,862 1.9 2,420 2.2 2,450 2.3 1,998 1.9

Yams 975 1.0 668 0.6 671 0.6 649 0.6

Sub – Total 87,019 89.8 101,006 92.4 95,153 90.9 96,343 90.0

Other Products 9,852 10.2 8,259 7.6 9,472 9.1 10,708 10.0

Total Domestic Exports 96,871 100.0 109,265 100.0 104,625 100.0 107,051 100.0

Source: CSO External Trade Annual Publications

Chart A illustrates that gross inflows of foreign exchange on services transactions as a ratio

to GDP, replaced merchandise exports as the major gross contributor of foreign exchange on the external current account.

Chart A: Current Account Foreign Exchange Contributors as a Ratio to GDP (Gross Earnings)

9

Chart B illustrates that on a net basis, services and current transfers in the form of workers‟

remittances, contributed surpluses on the external current account while merchandise trade and other transactions in goods and repatriation of income resulted in net outflows on the external current account.

Chart B: Current Account Foreign Exchange Contributors as a Ratio to GDP (Net Earnings)

The following table demonstrates the terms of trade implications of Dominica‟s weakening merchandise trade performances over the period.

Table 3:4 - Annual Visible Trade Outturns (EC$M) 1990 2002 2003 2004 2005 2006 2007

Total Exports (FOB) 148.6 115.2 108 111.75 111.86 111.98 99.45

Domestic Exports Of which bananas

142.4 83.1

106.33 18.4

104.28 15.9

107.05 19.6

104.63 17.4

109.27 20.2

96.58 13.6

Re-Exports 8.87 3.72 4.70 7.23 2.71 2.87

Imports (CIF) 318.4 314.05 345.45 392.03 447.76 450.84 528.48

Visible Trade Balance -169.8 -198.85 -237.45 -280.28 -335.9 -338.86 -429.03

Import Cover 0.47 0.37 0.31 0.29 0.25 0.25 0.19 Source: CSO Annual Trade Publications

10

The following charts highlight changes in relative significance of Dominica‟s major merchandise export markets, between 1990 and 2007.

Chart C: Major Merchandise Export Markets, 1990

Chart D: Major Merchandise Export Markets, 2007

Major Export Markets

European Union

Jamaica

Antigua and Barbuda

Trinidad and Tobago

Barbados

Guyana

St. Kitt's

St. Lucia

United States

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3.3 National SWOT Analysis

Strengths Government‟s recognition, as expressed in the GSPS, that

development of the export sector is key to achieving its medium term growth targets.

Cabinet Decision of December 2004 to create a framework- a Trade Policy Review Committee- for trade policy development in Dominica to facilitate the interaction and dialogue between the stakeholders of foreign trade and trade policy within the Government, the private sector and civil society

Dominica‟s central location within the CSME market

Dominica‟s increasing export market share in the CSME.

Proximity to the US market

Dominica has earned international recognition as one of the leading eco-tourism destinations in the CARICOM market

The nature isle reputation, which Dominica is known for, can be successfully used for branding and niche marketing especially for water and agricultural products

Given its high literacy rate, Dominica has a highly trainable labour force.

Sustained rapid growth in tourism related and professional services activity in the private sector

Democratic system of Government, fairly stable society, and relatively low crime rate compared to other Caribbean countries

The extension marketing and services support infrastructure available to the banana industry could be adapted to other crops.

Plans by Government to restructure the trade policy institutional framework are now in place

Weaknesses

Inadequate mentoring and incubation facilities for small businesses. (Border In)

Dominica‟s export base remains limited. (Border In – Capacity)

Low productivity resulting from high cost and inadequate cross border transportation, high cost of electricity, high cost of labour. (Border In – Capacity)

Inadequate use of statistics and market information in production planning by exporters (Border In – Capacity)

Low level of awareness of utility of clustering to derive synergies in procurement and other cost benefits. (Border In – Capacity)

Inadequate targeted skills training programmes to benefit the sector. Inadequate emphasis is placed on training in marketing, promotion and management and negotiation skills. (Border In – HCD)

Land tenure and land use issues constrain growth especially in agricultural production. (Border – Infrastructure)

Inadequate access to capital for investment and trade finance. (Client – Trade Finance)

Inadequate dissemination of product and market specific information to the exporting community. (Client – Trade Information)

There is no comprehensive database to inform analysis of performances of the services sector particularly tourism. (Client – Trade Information)

Standards consciousness and awareness among businesses, though improving, remain weak. (Client – Quality Management)

Inadequate attention is paid to potential and aspiring exporters in terms of services delivery. (Institutional – Services Delivery)

Some level of discomfort with information sharing, and networking, exists within the public and private sector. (Institutional – Leadership)

Lack of central institutional framework for management, implementation and monitoring outcomes of the export policy. (Institutional – Leadership)

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Opportunities Increased market penetration with market access opportunities in

FTAs e.g., CSME and EU CARIFORUM EPA, viz. transfer of technology, FDI, joint venture capital etc.

The opportunity to source capital under FTAs with non-traditional friendly countries, for establishment of micro finance facilities and seed capital for revolving funds.

Perception of being the food basket of the OECS

Existence of firms with excess capacity, already producing for the domestic market.

Several ongoing donor funded initiatives to enhance e-commerce capabilities and to address other competitiveness challenges.

Like the other OECS countries, Dominica is regarded to have a comparative advantage in services exports (this is corroborated in the BOP data)

Threats Disruptive impacts of natural disasters on the production base

Possibility that opportunities presented in FTAs will not be seized and instead FTAs could lead to marginalization of small businesses.

Possibility that with increased competition under FTAs if implementation of NES is delayed and competitiveness issues remain unaddressed, the profit margin of firms in Dominica could begin to be eroded with adverse effects on employment and poverty alleviation.

The global financial crisis and possibility of resulting prolonged recession in the US economy, and lower than forecasted growth in the global economy.

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4. STRATEGIC WEIGHTINGS AND PRIORITIES

4.1 Weighting of Perspectives

The literature review overwhelmingly indicates that competitiveness issues are major challenges to Dominica‟s export growth performances. Importantly, the GSPS, which provides the policy framework for economic growth, development and poverty alleviation in Dominica, espouses export development as a key growth pillar and identifies lack of competitiveness as a major constraint to export development in Dominica.

In a stakeholder participatory consultative process at the NCDT level the following weighting of stakeholder perspectives emerged:

Development Perspective – 25%

Competitive Perspective – 30%

Client Perspective – 25%

Institutional Perspective – 20%

The NES therefore places highest priority on addressing the competitiveness issues faced by Dominica‟s export sector. Nevertheless, the other 3 perspectives are also considered fundamental to Dominica‟s potential for export development and competitiveness. Addressing competitiveness issues will have strong positive crosscutting impacts on capacity to address the other perspectives and ultimately the development perspective, thereby accelerating the pace of achievement of the overall vision for the export sector.

4.2 Setting of Sector Priorities

The priority sectors listed below were determined based on level of value retention, acquisition, addition and creation potential and employment and income generating

impacts. This list was drawn up after giving due recognition to Dominica‟s resource constraints, weighting of perspectives and the vision set for the export sector. Major considerations in weighting the sectors therefore focused on:

1. Production capacity 2. Trends in international market demand and market opportunities within FTAs entered

into and being negotiated – to ensure market led planning:

3. A competitive/comparative advantage within the CSME and or within the wider global market – to ensure international competitiveness, and :

4. The greatest potential for value retention, acquisition, addition, creation and distribution – indicating scope for reinforcing and diversification of the export base.

The priority sectors for the medium term, that is, 2010 to 2014, with each sector further broken down to identify specific and related products and services that the strategy will focus on, are as follows:

Goods

1. Agro-processing a. Condiments b. Beverages c. Teas, herbs, spices, essential oils

2. Agriculture (fresh produce) a. Root crops b. Coconuts c. Peppers d. Coffee

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3. Energy and Natural Resources a. Geothermal b. Water c. Pumice

Services

1. Cultural Industries a. Music b. Performing arts

2. Professional Business Services a. Engineering b. Architectural services

c. Construction and related services1

3. Tourism a. Agro-tourism - farm tours b. Adventure tourism – hiking, diving c. Health and wellness – spas and mineral pools d. Heritage and Cultural tourism

This selection exhibits synergies in addressing the issues, which constrain Dominica‟s export sector. For example, the expected impact of a developed Energy and Natural Resources sector on the high energy costs and high costs of doing business in Dominica is underscored, as this weighs heavily on the level of competitiveness across sectors in the economy.

This selection of sectors is also driven by a desire to realize the full potential of the non-tourism services sub-sectors as major contributors to export earnings, while addressing issues limiting growth in the current major export sectors. This desire is to a large extent related to new market access opportunities presented under the CSME and the EU

CARIFORUM EPA, under all Modes of Supply but especially Mode 3 and Mode 42.The

Energy and Natural Resources sector offers tremendous value added potential, and above all, it addresses one of the crosscutting issues: high production costs, which negatively impacts on competitiveness of all businesses in Dominica.

A more detailed list of subsector priorities in the Draft Response Paper could serve as a guide for continued strategic resource allocation for export development beyond the medium term.

1 Strictly speaking, within the WTO GNS/W/120 Services Sectoral Classification which is based on the (UNCPC) Construction Services should be classified separately as code 511 to 518 rather than as Professional Business Services, however it has been grouped here because of the synergistic possibilities with engineering codes 8672 to 8673, and architecture 8674

2 Modes of Supply in Services trade are:

- Mode 1: Cross- border supply covers services flows from one member country to another - Mode 2: Consumption Abroad/ Cross-border covers service flows in situations where the consumer moves

into another country to consume the service e.g. tourism - Mode 3: Commercial presence covers situations where a service supplier of one member country

establishes a physical presence, through ownership or lease of premises, in another member country to provide a service e.g. subsidiaries of financial institutions

- Mode 4: Movement of Natural Persons covers situations when persons on one member territory enter the territory of another member to supply a service

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Crosscutting priorities, which emerged, for attention, from a very interactive consultative process at the NCDT level and its sectoral and crosscutting subcommittees are:

1.0. Capacity Development (human, capital) 2.0. Infrastructure 3.0. Trade facilitation 4.0. Cost of Doing Business 5.0. Trade Promotion and National Branding 6.0. Business and Export Competency 7.0. Trade Information 8.0. Trade Finance 9.0. Quality Management and Packaging and Labelling

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5.0 STRATEGIC DEVELOPMENT ISSUES

5.1 The Vision

The development vision of the NES is to contribute directly to sustained growth in national income and employment thereby impacting economic development and increased welfare across the population.

5.2 Issues

The development impacts of the NES will be the most profound determinant of its success.

According to the Country Poverty Assessment (CDB- 2003), poverty in Dominica is high. An estimated 29% of households and 39% of the population live in poverty with three quarters of the poor households living in rural areas. This is further corroborated by the sluggishness in GDP performances largely associated with developments in the banana industry.

Given this situation, the pace of job creation has been far outpaced by the number of school graduates. In the services sector, the fast growing tourism sector has not yet exhibited the desired level of income distribution effects through strong linkages with the agricultural

sector and other productive sectors of the economy. Initiatives in this regard are however ongoing.

Investments in youth development have not adequately emphasized the nurturing of an entrepreneurship culture among the youth. Despite some strides in youth development in recent times especially the launch of the DYBT, enhanced extension support to grant/loan recipients is nevertheless deficient. Interventions targeting development of the indigenous people have in the past, not focused enough on training and capacity building to generate sustainable employment and income flows. Over 70% of the Carib population therefore remains poor; additionally, the rate of unemployment and underemployment among the youth remains high. Current initiatives by the CDB to provide capacity-building interventions to the Carib Territory are aimed at stimulating entrepreneurship and business activity, which should ultimately contribute to poverty reduction and elimination. The scholarship programme targeting Caribs, introduced by UWI, is also aimed at poverty alleviation and elimination in the Carib Territory.

Dominica has made strides with respect to gender issues. The establishment of the portfolio of Gender Affairs within the Ministry of Community Development reflects a national policy commitment to gender equality. The issue of single parent headed households with no sustained sources of income however continues to contribute to the high level of poverty in Dominica.

Dominica, like its Caribbean neighbours, is highly vulnerable to destructive hurricanes and other climate change impacts, yet budgetary constraints make resource allocation for sustainable management and use of natural resources (e.g. land use planning and biodiversity issues) highly deficient.

5.3 Strategic Considerations

Strategic development considerations of the NES are to:

Maximize the direct contribution to overall economic and social development through increased employment, reduced level of poverty, and increased national income.

Contribute to development of rural and disadvantaged groups (Caribs and youth at risk)

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Promote environmental sustainability

Ensure that successful implementation of the strategy will advance achievement of national development objectives outlined in the GSPS.

5.4 Recommendations

Target areas of high unemployment and high incidence of poverty as recipients of assistance from trade support organisations including Dominica Youth Business Trust (DYBT), and the National Development Foundation of Dominica (NDFD).

Encourage the establishment of revolving funds and similar mechanisms and provide seed capital for on-lending to small businesses

Encourage targeted and customised training in entrepreneurial development and micro business management to be conducted in the communities of the trainees, that is, in villages with high unemployment and high incidence of poverty

Encourage and facilitate twinning of successful and growing exporters with identified potential exporters in areas of high unemployment and poverty, as part of a national business-mentoring programme.

Encourage specific training for agricultural producers in those targeted villages in production and handling methods to meet standards for supplying hotels and restaurants.

Facilitate replication of Fair Trade models in the export sector to enhance positive social impacts of successful market penetration.

Nurture, encourage and sustain a culture of strong/stronger community based

organisations (CBOs) in target villages as a platform for formation of small production clusters at the village level. The Carib Territory and the youth will be given priority. Participation of small businesses in villages with high levels of unemployment and poverty in national sectoral clusters will also be encouraged.

Encourage and facilitate formation of women‟s small business associations mentored by female role models who have been successful in the export sector.

Facilitate twinning of women‟s business associations with operators in the export sector to foster employment opportunities through sale of produce and services e.g. to the hotels both as employees and as self employed producers, given the high incidence of single parent households headed by women.

Encourage continued focus on gender equality issues in national policymaking. Renaming of the Ministry of Women‟s Affairs to Gender Affairs is a right step in this direction.

Minimise adverse effects of export-related activities on the environment and ensure a proper management framework for Dominica‟s natural resources and assets. According to the OECS St Georges Declaration of 2000, the strategy will encourage support for the ECU in implementing its work programme.

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5.5 OMTI: The Development Perspective Key Objective

Objectives Measures Targets Initiatives Lead Support When Required

To maximize the export sector‟s direct contribution to Poverty Reduction, Employment Generation and Increased Income

New business created in areas of high unemployment, in the south east, north east and south west of the island

3 new businesses in each zone by Y2 and each year thereafter

A campaign in villages of high unemployment to encourage community members to start up small businesses in priority sectors

MOCDEV SBU, DSIF, MOAGRI, DDA

3rd

Qtr

A special incentives package to induce entrepreneurship among the unemployed

IDA MOFIN, NEC sub-committee, SBU

Y2

No. of new seed capital/revolving funds created to assist the unemployed to become self employed.

1 new fund by end of Y1

Support the AID Bank in sourcing funds which can be on-lent at a maximum of 6% to small businesses across priority sectors

MOFIN

MOT Y1

No. of inter-sectoral linkages created for existing and potential entrepreneurs in areas of high incidence of unemployment

15 linkages by 4th Qtr

In : - Agriculture - Tourism - Agro-processing

Conduct a survey of households in villages with high incidence of poverty

Village Councils

MOCDEV, DDA, DCAB, DHTA, DHA

Immediately

Analyze the data and link existing and potential small and home-based businesses to the supply chain of major agro-processors, hotels, restaurants and other businesses

DEXIA MOCDEV, DDA, DCAB, DHTA, DHA, village councils, IICA

3rd

Qtr.

Success in replication of Fair Trade model for exports of root crops

Fair Trade model in place for root crop, coffee and pepper exports by end of Y2

Engage Fair Trade Organization to negotiate Fair Trade environment for exports of dasheen and other root crops to the UK.

Private sector

DEXIA, MOT, MOAGRI, D/ca Fair Trade Org

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Objectives Measures Targets Initiatives Lead Support When Required

To maximize contribution of the sector to rural and disadvantaged groups

Level of emphasis placed on directing public and private sector investments in the export sector to develop youth and Caribs

200 youth including 10% Caribs receiving support from the TSN to enter the export sector by end of Y3

A campaign to direct at least 40% of the portfolio of the AIU and Small Business Unit to the youth and aspiring Carib entrepreneurs by: - sensitizing the AIU and the

Small Business Unit to the objective of the NES

- Ensure that rehabilitated youth at risk are targeted to participate in the export development drive

DEXIA MOT Immediately 500,000 (EU)

Ensure timely implementation of donor supported, including current CDB, capacity building and strengthening projects in the Carib Territory

MOCARIB

Number of successful production clusters formed at the village level

By end of Y2 production clusters in the Carib Territory and at least 1 in each village

Embark on a cluster development campaign targeting small businesses in communities with high incidence of poverty and unemployment

DEXIA, The Business Gateway

MOT Immediately

To promote gender equality in the sector

Level of gender balance in leadership and ownership of small businesses and employment created

New businesses established and training under the export development drive to target males and females equally on start up

Ensure that the DNCW is represented on the NEC and on the planning committee to determine guidelines for selecting trainees and aspiring exporters in all sectors

MOT

MOGEN

To minimize adverse effects of export related activity on the environment

Level of implementation of work programme of the St Georges Declaration and other conventions

A work plan with budget in place for achieving targets set in the declaration and other conventions with approved budget by Y2

Allocate resources from the consolidated funds annually to facilitate the ECU to more effectively deliver on its mandate

MOFIN MOAGRI 2nd

FY 500,000

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6.0 CROSS –CUTTING STRATEGIC ISSUES

6.1 The Competitiveness Perspective

Competitiveness emerged as most critical to development of Dominica‟s export sector. Issues determined to be most critical on the supply side related to capacity development include: level and quality of human and capital resources available to serve the sector, cross border (air and sea) transportation, the enabling legislative framework and compliance issues, energy costs and other costs of doing business. On the demand side issues include: inadequate market support and promotion, and lack of a Dominica brand were highlighted as major issues affecting competitiveness.

6.1.1 Border – In Gear: Supply Side: Capacity Development Issues – Human Capital Capacity

Issues

Land tenure and land use issues affect ability to meet collateral requirements by financial institutions, access to suitable land and productivity

Low productivity in agriculture and related industries associated with high production costs – energy, labour, credit – and operation inefficiencies

Education system does not adequately emphasize courses in ethics and civics, and inadequately emphasizes technical and vocational skills requirements in Dominica‟s job market

The education system has contributed to a disequilibrium job market in which there is a high rate of unemployment resulting in outward migration especially among the youth while key productive sectors face labour shortages hence high labour costs.

Shortage of adequately trained persons in entrepreneurship, management and marketing

Inadequate use of e-commerce technology and the web platform for conducting business

Low rate of international standards certification especially in the agro-processing sector largely resulting from high cost of certification and inadequate sensitization to the need for international certification

An education system that does not nurture and stimulate a culture of R & D

Inadequate investments in R & D for product/service development and diversification

Inadequate investment in market opportunity identification, targeted market research and in-market promotion

Inability to significantly attract sustainable flows of foreign direct investment

Inadequate linkages/partnerships between local investors and exporting (including potential and aspiring) business

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Possible Responses

Give priority to implementation of land reform programme

Address the issue of labour productivity through several initiatives, aimed at short term and long-term results, to include further development of the school curriculum to pay attention to existing deficiencies in addressing job market needs and developing an entrepreneurship culture in Dominica. Initiatives aimed at short term results include broadening and extending the existing internship/apprenticeship programme for the graduating classes of secondary schools and the DSC, embarking on an adult education programme targeting deficient operators in priority sectors, and increased support by clients in the private sector for the entrepreneurship programme offered by the DSC and private training institutions.

Involve representatives from all priority sectors in planning school curriculum development.

Increase national investment in human capital development through the grant of annual scholarships for developing management and other competencies in priority export sectors, investment in laboratory facilities throughout the school system to foster a culture of innovation and research and development among school leavers.

Increased investment in developing an enabling Standards, Quality Assurance and Metrology (SQAM) infrastructure

Aggressively train personnel for the job market for the short, medium and long term by encouraging private education service providers/ institutions to partner with the Ministry of Education to provide training on an ongoing basis in entrepreneurial and management competencies

Encourage and support development of business clusters and business incubators

Establish a Productivity Measurement and Support Centre in the private sector

Undertake an aggressive investment promotion drive to attract investment in priority sectors

Ensure royalty policy accrues a fair revenue return to Government on its natural resource endowments

Encourage R & D by:

strengthening network relationships with regional and international research institutions including UWI, CARDI

Enhance the fiscal incentives regime to more effectively induce investment in R&D and purchase of capital equipment

Continue the programme to provide all schools with computer laboratories

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6.1.2 OMTI: The Competitiveness Perspective Border-In Key Objective

Objective Measure Target Initiative Lead Support When Required

Capacity Development

To develop productive capacity within Dominica‟s export sector

Actual level of increase in production capacity in priority export sectors

50% increase in productive capacity in priority export sectors by Y4

Aggressive land use programmes to bring idle lands into productive use

Implement a land planning and zoning programme

Physical Planning Dept

MOT, Trade Assns in respective sectors, MOAGRI, Financial Institutions

Y3 500,000 (USAID) 100,000

Introduce appropriate technology to enhance the efficiency of existing plants

DEXIA through commissioning short term consultancies

To increase productivity in priority sectors

Actual increase in productivity

25% of enterprises in the export sector confirming increases in productivity by Y3

Establish productivity indicators for agri-business firms and producer groups

DEXIA CSO, Umbrella Trade Orgs in respective sectors, MOT, MOAGRI, MOTOUR

Y2 Restructured DEXIA

Establish a Government guaranteed loan fund at the AID Bank at a maximum rate of 6% for productivity enhancement

MOFIN Y1 10,000,000 (CARICOM RDF)

provide support to firms in the sectors to benchmark to international workforce and technology standards

DEXIA Y2 Restructured DEXIA

Capacity Diversification

To add new high value goods and services to Dominica‟s export base

New and improved product and service lines

A minimum of 6 new value added products/ services in total exported from priority sectors by Y4

Establish a fund for increased investments in R&D starting with needs of existing exporters and investment in equipment

MOT Respective Umbrella Trade Assns, MOFIN

4th Qtr 4,000,000

(CARICOM RDF)

Initiatives to secure follow-on to the EU funded business and schools training ICT project

MOTELE Y1 50,000,000

Expanded access by small businesses to business incubators and mentorship programs

DEXIA MOT 2nd

Qtr 500,000 (EU)

Use of a Dominica brand DBOS All stakeholders Y2 100,000 (GoCD)

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Disseminate market and product specific information to business community on standards and other entry requirements and consumer preferences

DEXIA DBOS, CSO Y1 200, 000 (GoCD) Restructured DEXIA

To increase level of investments in priority sectors and in other productive sectors

Level of new investment in the productive sectors

At least 5 new viable businesses in operation in each priority sector by Y4

Review tax incentive regime to induce investments in R&D, and complete establishment of a “one-stop shop” for investors

IDA MOFIN Y2

Strengthen public and private sector procurement guidelines

MOFIN Trade Assns Y1 Ongoing

Enhance transparency and efficiency in processing of applications from investors

MOT IDA Y1 Ongoing

Expedite completion of design of National Investment Strategy (NIS)

IDA MOT Y1 Ongoing

Human Capital Development

To develop a cadre of trained professionals to service Dominica‟s export sector

Number of training courses in management competencies conducted to include: ICTs, entrepreneurship, negotiating, marketing and financial management

10 training courses annually over the first 4 years from Y2

An integrated approach to planning curriculum development to ensure that human resource training requirements of each priority sector are met in the medium to long term

Refocusing of the school curriculum to emphasize commerce, entrepreneurship and vocational training

MOEDU DEXIA, Umbrella Trade Assns in the respective sectors, DSC, private training institutions

Y1 Ongoing actual training could however require an additional 4,000,000

Certify private training institutions and encourage them to increase their offer of vocational training courses and courses in management competencies

MOEDU DEXIA, UWI 50,000 (GoCD)

Number of tertiary level graduates trained

At least 6 tertiary level graduates every year from

A programme to grant at least one university scholarship annually to each priority sector

MOEDU DEXIA, Trade Assns in respective sectors, UWI &

Y2 4,500,000

24


to meet needs of priority sectors

year 4 based on needs assessment other regional and int‟l universities

Broadening and extension of the existing internship/apprenticeship programme for the graduating classes of secondary schools and the DSC

DSC, Secondary schools

MOEDU Y1

Basic education level of ancillary service providers in priority sectors

At least 200 service providers/artisans/farmers graduating from adult education programmes by Y4

Embark on an adult education programme targeting deficient operators in priority sectors

Adult Edu Unit MOEDU, Trade Assns

Y1 100,000

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6.1.3 The Border Gear: Supply Side: Quality of the Business Environment

Issues

Slowdown in implementation rate of feeder roads and intra-island road development programmes which adversely affects movement of passengers and goods with negative impacts on productivity

Inefficient cross-border air and sea transportation- high cost, unreliable and inadequate refrigerated freight services

Need for streamlining of procedures for doing business. Despite some improvements in some areas Dominica‟s overall doing business rating in the World Bank 2008 Doing Business Report reflected the need for much more improvement in the business environment.

Inadequate legislative framework and inadequate transparency in regulations and enforcement

Poor compliance and enforcement culture with regard to trade facilitation

Excessive dependence on fossil fuel resulting in high cost of energy and contributing to high cost of production and low productivity. The PetroCaribe Agreement entered into with Venezuela is expected to partially address the issue of high energy cost in the short run.

Need for continued efficiency improvements in electricity and telecommunication services. Frequent/unscheduled power outages and disruption in internet services impact negatively on production and business efficiency and viability

Inadequate business incubation and cluster support services

Possible Responses

Give higher priority to expenditure on feeder road maintenance and development and island wide road maintenance

Investigate feasible options for a joint OECS approach to an urgent solution to the cross border transportation constraint

Intensify efforts to attract additional freight lines – both air and sea

Continue to give priority to airport development with the goal of construction of an international airport

Ensure that the customs modernization and simplification project, funded by the World Bank, is successfully completed on schedule by June 2010

Increase rate of computerization and decentralization of the functions of the Government Registry

Undertake a project to review legislation relating to priority sectors to:

determine adequacy

make revisions/draft new laws as determined from the review

revise/draft regulations as necessary

Make resources available to undertake a compliance sensitization campaign and to ensure enforcement of legislative and regulatory provisions

Ensure and support investments in cheaper, more reliable energy sources bearing in mind Dominica‟s potential in geothermal energy

Encourage continued liberalization of the telecommunications sector

Promote stronger Public Private Sector Partnership

26

Support and encourage the National Telecommunications Regulatory commission (NTRC) and the Independent Regulatory Commission (IRC) to be effective regulatory bodies of the telecommunications and electricity services respectively and encourage additional investments to improve efficiency of services delivery by service providers in both sectors.

Strengthen business incubator services and cluster development support programmes to facilitate exporters, especially young entrepreneurs

27

6.1.4 OMTI: The Competitiveness Objective: Border Key Objectives


To ensure that the physical infrastructure is conducive to sustained development of the export sector

Improvement in condition of internal road network

Internal road transportation time to airport reduced by Y2

Expedite implementation of airport road rehabilitation project

MOWKS MOFIN, DEXIA

Immediately Ongoing

Engage consultant to conduct an urgent review of current road upgrade and maintenance programmes

MOWKS DEXIA, MOTOUR

2nd

Qtr

Increased use of safety indicators and other traffic guides in road construction

Sensitize Min. of Works to include specifications and budgetary allocations for safety indicators in project designs

Traffic Dept.

DEXIA, MOTOUR, Sector Umbrella Orgs

Y2 70,000 (EU)

Improvement in condition of feeder/ access roads

Rehabilitation of 20% of farm access roads by end of Y3

Expeditious implementation of ongoing feeder road rehabilitation programme

MOWKS MOFIN, MOAGRI

Y2 Ongoing

Improvement in air and sea connection

Average number of hours spent in-transit at airports reduced by 50% by Y2

Improved flight schedules

Attraction of at least one additional airline service to Dominica by end of Y1

Continue to aggressively implement port improvement projects - Construction of an international

airport

MOPOR, MOTOUR

MOFIN, DEXIA

Ongoing (World Bank/EU, GoCD) 1.9b

An aggressive negotiation campaign to secure additional airlift into and out of Dominica targeting AA, LIAT and other regional and international airline

MOPOR, DEXIA, DDA Umbrella Orgs representing priority export sectors

2nd

Qtr 50,000 (GoCD)

Increased availability of ferry services between Dominica and French West Indies, St Lucia and possibly Antigua

Design an attractive incentives package and engage the private sector in Dominica and the rest of the CSME to stimulate interest and investment in such a ferry service

IDA DDA, Private Sector Stakeholders

Y2

Rev. Foregone

Actual level of improvement in the quality of

Provision of more relevant information to visitors at all ports of

Establish an interagency and inter-sectoral team to enhance tourism facilities at ports of entry

DDA IDA, Umbrella Sector Assns

Immediately Man Power

28


information facilities at Ports of entry

entry in Dominica Adopt an environmental charter to be visible at all ports of entry, tourist establishments, and to be enforced. (Highlighting Dominica as a carbon contributor)

Undertake a campaign to get necessary information from businesses.

To minimize regulatory and administrative bottlenecks faced by exporters

Reduction in the level of delay caused at sea and air ports of entry by customs procedures

Decrease turnaround time by arriving passengers passing through customs and immigration to a maximum of 20 minutes by Y3.

Implement a customs luggage scanning system

Customs Dept.

MOFIN, MOT Y2 1,000,000

Actual time to undertake all required procedures and obtain approvals to complete an export transaction

Current number of documents and level of processing time reduced by the end of Y2

Timely launch of ASYCUDA WORLD

Y2 Ongoing

Actual time taken to clear imported material and equipment required for export related activity

Same day clearance for registered and tax compliant exporters by Y2

Existence of an enabling legislative and regulatory framework

Respective sector policy and enabling legislation and regulations in place and being enforced by Y2

A campaign to ensure that enforcement/compliance officers in the public sector do their work

A consultancy to review legislation, amend existing and/or enact new legislation with regulations as deemed necessary from the review

MOLEGA Trade Assns in the respective sectors

Y2 100,000

29


Incidence of praedial larceny

50% reduction in reports of praedial larceny by end of Y2

Enforce existing laws and regulations relating to farmer registration

Campaign to encourage farmers to report incidents

MOAGRI Police Dept. Immediately

Simplified customs procedures

Modernization and simplification of customs procedures with launch of ASYCUDA World by June 2010.

Support successful completion of customs modernization and simplification project by June 2010 with launch of ASYCUDA World

Customs Dept.

MOFIN Y1 Ongoing

To minimize indirect costs and other costs of doing business faced by exporters

Level of efficiency of electricity services

80% reduction in unplanned electricity outages by Y2

Investments in technology to improve operational efficiency of electricity generation

DOMLEC

IRC Y1 DOMLEC

An effective IRC Engage IRC to ensure effective delivery of its mandate

MOENRG Private Sector Stakeholders

Y1 Ongoing

20% reduction in electricity rates by Y4

An incentives and promotion programme to attract foreign investment in development of alternative energy sources – geothermal

IDA MOFIN, Advocacy groups

Y2

Level of efficiency of internet services

Upgraded telecommunication (internet) system to 3G standard (broader band width) after 2 years

Encourage continued liberalization of the sector

ECTEL NTRC On-going Ongoing

Rates comparable to lowest in OECS

Continued investment in technology

LIME & other service providers

NTRC Y2 Service providers

Level of efficiency of port charges

Availability of well coordinated cargo consolidation services which fit into schedule of shipping lines by Y2

Transition from FOB to

Form Multitask team to address the matter

DASPA Trade Unions, Shipping Agents, MOFIN, MOT

Y1

30


FAS terms of payment by importers within one year

Level of duties and taxes paid by exporters Level of taxation on royalties earned on selected services exports

Tax incentives available to priority sectors to be reviewed and rationalized by end of Y4

Progressive reduction of duties on imports of machinery and equipment (including heavy duty vehicles) for technology modernization and improvement

MOFIN MOT, Trade Assns in the sector, DEXIA

Start Y2

Progressive reduction by 50% on import duty paid on copy devices produced outside Dominica

Y1

Elimination of double taxation on royalties/profits earned by exporters especially in the cultural industries

Introduction of a uniform VAT rate for the tourism sector

MOFIN IDA, MOTOUR Umbrella Orgs for the Cultural Industries & Tourism Sectors, MOFORA

Y1

Negotiate Double Taxation Treaties with target market countries

Harmonization of tax policy within the OECS and pursue establishment of the single CARICOM economy.

Min. of Trade

Y3

Cost due to delays to shipping lines carrying agricultural exports during periods of heavy traffic at ports

Elimination of displacements of cargo lines carrying agric exports, in favour of cruise ships and other lines by 4th Qtr

Establish an inter ministerial committee to draw up ship berthing schedules that do not place any sector at a cost disadvantage

DASPA DDA, MOAGRI, MOT

3rd

Qtr

31

6.1.5 The Border – Out: Demand Side Constraints: To Ensure Demand Led Export Development

Issues

Market Access

There is inadequate hands-on sector focussed information and guidance (practical guides) on how to seize market opportunities, available to businesses emerging from FTAs already/ being entered into, in particular the CSME, EU CARIFORUM EPA, CARIBCAN, CBI/CBTA, ALBA etc.

Need to ensure transparency in administering of provisions of FTAs entered into especially with reference to movement of natural persons and rules of origin.

Market Support Services

Services delivery agencies including DEXIA and the Discover Dominica Authority (DDA) are severely constrained by inadequate financial resources

Inadequate use of the Dominican Diaspora in identifying and mobilizing niche market segments in target markets

Inadequate use of Dominican embassies and consulates overseas in providing market intelligence

National Promotion

Inadequate appreciation of the critical role that promotion must play in market penetration and development. Low priority given to budgetary allocations to promotion in the public and private sectors

Inadequate professionals with competencies and expertise in marketing, promotion and negotiating skills

Lack of a national brand for Dominica

Possible Responses

Market Access

Undertake a programme to provide target businesses in priority sectors with practical information on how to position themselves to penetrate target markets within FTAs entered into by Dominica

Develop networking relationships between Dominican exporters and target key export sector stakeholders in respective target markets

Market Support Services

Establish consular or embassy level presence in target markets and equip all embassies and consulates with resources to provide market intelligence for export development

Engage Diaspora to become involved in identifying and mobilizing ethnic market niches for targeted products/services

National Promotion

Strengthening of mechanisms to foster networking within the export sector in Dominica to plan national promotions

Priority action to develop the Dominica brand and promotion of Dominica‟s nature island reputation

Significantly increased budgetary allocations for promotion – in-market and IBMs- by the public and private sectors

Develop a national brand for promoting Dominica‟s export sector

32

6.1.6 OMTI: The Competitive Perspective: Border-Out Key Objectives


To secure best possible access for Dominica‟s exports in regional and international markets

Number of FTAs entered into, and actual benefits from FTAs entered into

50% increase in exports of goods and services to CARIFORUM countries, US, UK, France and Germany, by Y4

Ensure full compliance to and transparency in administering provisions of all FTAs entered into by placing issues on agenda at meetings of CARICOM heads

Prime Minister‟s Office

MOT, DEXIA, Trade Assns in respective sectors

Y1 CARICOM/ OECS

Link 50 targeted exporters in priority sectors with major importers and businesses in target markets by Y2

DEXIA

MOT, IDA, Umbrella Trade Assns in the priority sectors

Y3

Strengthen programmes to develop ICT capacity of exporters specifically Website and e-commerce.

MOTELE DEXIA, MOT Y1

Documented guidelines for exporters by Y2 on how to increase exports to FTA member countries

Draw up a profile of 10 major target markets highlighting appropriate distribution channels, major importers and businesses, and consumer preferences for targeted goods and services to inform a focused sensitization campaign to guide exporters

DEXIA MOT, MOTOUR Y2 Trade Information Officer

To provide Dominica‟s exporters with increased support in principal markets

Level of support for private in-market promotion

5 successful export business connections made with support from embassies and foreign representatives overseas by Y4

Provide resources to embassies/consulates to enable them to provide trade support and market intelligence services with respect to target services/products

MOFORA MOT, DEXIA, MOFIN, IDA

FY2 5,000,000

Reestablishment of promotion offices in the US and UK to promote Dominica

DDA MOT, DEXIA, MOFIN, IDA

FY2

2 successful business connections made with support from Dominican Diaspora organizations by Y2

Engage Diaspora groups to partner with Government in taking on this in-market advocacy for Dominica‟ function possibly on an expense reimbursement basis.

MOT DEXIA, IDA, Diaspora groups

Y1 250,000

33

To reinforce the export sector‟s competitiveness and presence in principal markets

Number of missions promoting Dominica‟s exports

1 all-sector promotion annually from Y2 in targeted markets

Set up inter-sectoral committee to plan annual national promotion and source financing

DEXIA

MOT, MOFIN, IDA, DDA, Sector Umbrella Assns

Y1

Participation in at least 2 sector specific trade shows annually from Y1

Draw up list of annual trade shows by sector and then strategically select 2 per sector for participation

DEXIA Sector Umbrella Assns

1 IBM annually from Y2 Plan and prepare budget

Source funding

DEXIA MOT, MOFIN, Respective Priority Sector Umbrella Orgs, IDA

1st Qtr Y2 3,000,000

(GoCD, private sector)

Number and cross-section of exporters participating in national promotion missions overseas

Representation by all targeted sectors to include at least one potential exporter from each sector and at least one aspiring exporter each year from Y2

A campaign to engage exporters to place priority on participation in in-market promotion missions and trade shows and to provide assistance with sourcing and transporting promotion material annually

DEXIA IDA, Umbrella Assns in Respective Priority Sectors

1st Qtr Y2 200,000

To develop a high profile brand for Dominica that highlights its environmental attributes

Launch and recognition of National Brand by Y3

Develop National Brand DBOS DEXIA, Export Sector Stakeholders

Y2 500,000

34

6.2 Export Business Competency

Vision

To have a business sector that is well versed in the requirements of the export market in order to realize increased market penetration.

Issues

Inadequate appreciation of the importance of the need to learn and apply the rules and procedures governing export operations

Inadequate quality consciousness and inappropriate packaging

Inadequate export management skills

Possible Responses

Training and awareness campaign in export and import procedures/requirements

Expanded business counselling programmes

Training and certification in meeting target market standards and consumer preferences

Targeted foreign languages training

Build teams of qualified certified export consultants with the necessary skills and capacity to create and offer export competency training programmes

35

6.2.1 OMTI: Clients Perspectives: Business/Export Competency Key Objectives

Objective Measure Target Initiatives Lead Support When Required

To ensure that all exporters fully understand export procedures

Level of understanding in export and import procedures

Full understanding of the export regulatory framework by end of Y2

Timely completion of the ongoing customs modernization project

Customs Dept.

MOFIN June 2010 Ongoing

Train customs brokers/exporters/importers in complying with new streamlined procedures

Business Dev. Consultant

3rd

Qtr 2010

Access to export guidelines and entry requirements for target markets

All guidelines available at DEXIA by beginning of Y2

Obtain/compile manuals

Disseminate guidelines

Place guidelines on DEXIA‟s Website

DEXIA Umbrella Trade Assn in Respective Sectors

Y2

To ensure that all exporters have the competency profile to achieve sustained market success

No. of training workshops

4 workshops for each targeted sector and market from Y2, on: o standards and

technical barriers o development of

business plan for exporting businesses

o pricing and marketing for the export sector

foreign language training – French, Spanish, Chinese and German

Source funds/technical assistance to conduct training of trainers to develop a cadre of business consultants to provide training to exporters on an ongoing basis

DEXIA MOT, MOFIN Y1 400,000

36

6.3 Trade Information

Market Information to facilitate planning and decision-making by stakeholders.

Vision

To have an export sector which is well informed on market standards, consumer preferences, demand and supply, trend analysis and market forecasts.

Issues

Inadequate resources within the services delivery network to conduct necessary market research

Inadequate gathering and dissemination of product and market specific information and market intelligence

Lack of awareness of regular sources of information on export markets and products.

Lack of packaged, specific export product and market information to guide export planning

Need for more aggressive dissemination of market and product focused information on benefits to be derived from the EU CARIFORUM, EPA and the CSME.

Possible Response

Establishment of central export information unit within the NEC Secretariat to work in collaboration with the CSO to research, compile and disseminate comprehensive trade data to all stakeholders.

37

6.3.1 OMTI: Clients Perspective: Trade Information Key Objectives

Objective Measures Targets Initiatives Lead Support When Required

To ensure that coordinated & comprehensive trade information services are available to export enterprises & decision-makers

Increase in information dissemination on market opportunities, market requirements, statistics generated, market analysis and market intelligence with focus on the specifically targeted markets – French West Indies, UK, France, Germany, USA, Canada and the CSME and priority export products & services

Establishment of a central information unit during 1

st Qtr.

Mandate the NEC Secretariat (DEXIA) to undertake the function of central export information unit & appointment of a Trade Information and Research Officer at the NEC Secretariat

MOT MOFIN 2nd

Qtr Included in budget for NEC Secretariat

Actual number of export opportunities resulting from trade information disseminated by the central information unit

Identification & dissemination of information on at least 5 market opportunities with serious potential every year.

Actualization by clients – current, potential and aspiring- of at least 2 opportunities in each priority sector after Y2

Establish contacts in each targeted market to provide the information on opportunities and requirements of each market

Compile success stories in each priority sector for dissemination among target groups

DEXIA MOT, MOFORA

By end of Y1

38

6.4 Trade Finance

The situational analysis reveals access to affordable finance to be among the most crosscutting limiting factors faced by Dominica‟s export sector. Addressing this constraint is therefore recommended for priority attention. Recent initiatives by GoCD in this regard include establishment of the Small Business Unit in the Ministry of Trade, establishment of the Agricultural Investment Unit, (AIU) and the Dominica Youth Business Trust (DYBT). The Dominica Social Investment Fund (DSIF) and NDFD also provide some level of grant support to small businesses.

Vision

To provide financial resources for development of Dominica‟s export sector in a manner that maintains a fair return on capital invested and ensures stability of the financial system.

Issues

Limited access to credit in face of excess liquidity. This is so because of the perceived high risk attached to exposure to the sector which drives the cost of credit

A „one size fits all‟ approach to lending by the financial institutions

Low rate of foreign direct investment in Dominica

High rate of nonperforming assets held by the AID Bank

Inadequate seed capital and revolving funds

Insufficient capitalization of special funds created in the public sector (AIU and SBU) to target small businesses

Existence of an export credit guarantee scheme, at the ECCB, of which there is very little awareness and use among Dominican exporters

Rigid loan collateral requirements which cannot be met by most small businesses

The financial sector remains undiversified and is dominated by commercial banks

The insurance sector is dominated by foreign companies which do not place priority on holding part of their investment portfolio in the local economy

Lack of joint venture financing options

Poor record keeping by small businesses which affects their ability to attract financing

A culture among small businesses which does not sufficiently appreciate the importance of quality business development plans including marketing and financial plans in business management and sourcing capital.

Possible Responses

Establishment of special business credit/ guarantee fund window at the AID Bank and strengthening of the bank‟s project management functions

Support the AID Bank in sourcing lower interest funds and grant funds

Encourage better knowledge of exporting business by financial institutions to improve their sector risk management skills and allow them to better offer sector specific packages

Pro active efforts to link exporters with local and foreign investors through aggressive campaigns to attract foreign investments, and to provide incentives to all investors

Establishment of new seed/revolving capital funds and or increased capitalisation of existing ones

39

Campaigns to induce financial institutions to review their collateral and risk assessment policy relating to the sector

Education of exporters to better understand and meet requirements of financial institutions

Training of business owners and operators in business management and marketing competencies to ensure business viability and fair returns on investments to all stakeholders

40

6.4.1 OMTI: Clients Perspective: Trade Finance Key Objectives

Objective Measures Targets Initiatives Lead Support When Required To ensure access to affordable financing to facilitate investment in working capital and technology and enhance viability of businesses

The amount of concessionary credit (maximum 6%) available to current, aspiring and potential exporters and other participants in the value chain

100% increase in no. of loan applications by exporters in the sector with an 80% success rate by year 3.

Undertake a level of commitment survey to select potential beneficiaries of the following interventions: o Targeted programme of training in

preparation and use of business plans, in costing, record keeping and financial reporting

DEXIA

MOT

3

rd Qtr

o Sensitizing customers to the process of loan application and negotiating with financial institutions

Financial institutions

MOFIN Within 1 Year

50,000

o Sensitize management of AID Bank and NDFD to ensure adequate allocation of resources to their projects units respectively to better monitor and evaluate implementation and performance of funded projects

DEXIA MOFIN, MOT, Donor Community

Start campaign immediately

o Each financial institution to earmark a percentage of their credit portfolio to a special credit facility to encourage business and export development

MOT MOFIN

Start immediately

2,000.000

Establishment of a guarantee fund at the AID Bank targeting clients in priority sectors

MOFIN MOT Y2 15,000,000

Consultations with financial institutions on risk management and micro credit financing policies to:

MOFIN Financial Institutions, MOT, DEXIA

Y1 30.000,000

o Review of collateral policy and introduction of innovative collateral options

MOFIN.(short term consultancy)

MOT, MOAGRI, MOTOUR, DEXIA

2nd

Qtr

Improve management of DYBT to provide project support beyond draw down of loan by applicants by: o Strengthening its project appraisal skills o by supporting its mentorship programme

MOYOU DEXIA Y2 1,000,000

41


Increase allocation of funds from the national budget (including earmarking of donor funds) for seed capital to support businesses in targeted sectors

MOFIN MOT Y2 2,000,000

Address land tenure and use issues faced by several small businesses

MOLEGA MOT, DEXIA Y2

Moral suasion to encourage financial institutions to make interest rates on loans to businesses less burdensome

MOFIN Trade Assns 4th Qtr

Performance of recipients of concessionary credit

Maximum 3% delinquency in servicing loans by Y4

Data collection by the Central Information Unit of DEXIA from financial institutions on performance of the new credit facility created

DEXIA

Financial Institutions, FSU

Y2 In-plant targeted training of clients in financial

management as part of monitoring the programme

Financial Institutions

DEXIA Y2

Level of private equity investment in the export sector

At least 30% increase in equity investment in the sector by Y4

Review of concessions regime to ensure that adequate tax incentives are given to the sector

IDA

MOFIN Y2

Timely commencement and completion of design of a national investment strategy for Dominica

MOT Y1

Undertake an intensified aggressive promotion campaign to attract foreign direct investment

DEXIA 4th Qtr

Level of export credit and insurance schemes available

A complete review of existing schemes by end of Y2

Place the matter on the Agenda of the Eastern Caribbean Currency Union (ECCU) Council

MOFIN

MOT 4th Qtr

Commission a review of the ECCU Export Credit Guarantee Scheme

Endorse and implement recommendations from review

ECCU Council

MOFIN Y2

42

6.5 Quality Management, Packaging and Labelling

In the globalised trade environment (Standards, Metrology, Conformity Assessment, Accreditation and Certification), quality standards and packaging, and labelling requirements are emerging as primary market access barriers. For small island developing states (SIDS) like Dominica addressing such non tariff barriers (NTBs) have substantial cost implications and require extensive sensitization, (institutional building and strengthening as well as capacity building) and training programmes. This is so specifically for the agriculture and agro processing sectors.

Vision

To achieve full compliance of domestic standards, with regional and international standards, so that goods and services produced in Dominica meet international best practice standards and quality goods and services are produced for local consumption and for export markets.

Issues

Poor standards awareness and compliance culture (general lack of awareness of the importance of standards and the implication for improving business competitiveness)

Lack of appreciation by businesses of the important role of standards compliance in export competitiveness and market penetration

High cost of international standards certification (high cost of international standards-based certification and accreditation services) and compliance

Lack of sufficient and adequately trained personnel and expertise in ISO and HACCP auditing and certification;

Lack of recognition of the importance of branding in developing niche markets

Inadequate synergies and coordination among SQAM agencies in Dominica

Inadequate plant and animal laboratory testing facilities

General lack of understanding of the role and function of a national standardization authority

Need for increased synergies among SQAM service providers in the OECS

Possible Responses

Sensitize and educate exporters on benefits of standards compliance and quality management

Undertake an awareness campaign of the provisions of the Fresh Produce Act and ensure that all fresh produce exported from Dominica is from a certified pack house

Establishment of a national policy on standards and standards related issues for Dominica;

Establishment of a national standards and quality infrastructure for Dominica;

Island wide dissemination of all national standards;

Introduction of standardization as a subject in schools and colleges;

Establish national quality award programs for various social and economic sectors;

Establishment of appropriate national laboratory and testing infrastructure to support and improve global competitiveness of Dominica‟s key economic sectors;

Provide information on target market standards and quality requirements to businesses

Establish a Geographical Indicator (GI) for Dominica‟s Carib crafts

43

Develop national labelling standards

Conduct training to support exporters in meeting target market standards

Timely furnishing and commissioning of the National Centre of Testing Excellence (NCTE) and the Multi Purpose Pack houses.

Equip DBOS with the capacity to provide cost effective quality certification to exporters and to carry out its statutory mandate

Provide training for all SQAM service providers by securing technical assistance and attachments to international agencies like the ISO

Upgrade animal and plant testing laboratory facilities

44

6.5.1 OMTI: Clients Perspective: Quality Management, Packaging and Labelling Key Objectives

Objective Measure Targets Initiatives Lead Support When Required To facilitate international quality management and food safety control system certification for enhancing the global competitiveness of business enterprises

Companies with documented internationally registered Certificates

5 Firms with documented and implemented quality management systems by Y3

Sensitize clients on the required standards & monitor implementation

DBOS MOT Y2 1.5 million

Develop national certification programs

Undertake national certification awareness campaign

Immediately

Establish compliance monitoring programs.

Ongoing

Undertake awareness campaign on all national legislation related to trade implications of non certification and standards compliance

MOT, MOAGRI, MOTOUR, DDA, DHTA,

Immediately

To increase the monitoring & control of product quality

Monitoring & control tools

20 exporters certified by Y2

Provide training of trainers training for staff of the DBOS in respective industry requirements

DBOS MOT Immediately 2 million

All batches of products and services certified by Y2

Training to build up a cadre of qualified auditors and other experts to support exporters seeking international certification

Y2

To establish laboratory facilities to enable product testing

Type of lab facilities available

Secure lab equipment for the NCTE as planned

Ensure timely commissioning of NCTE

MOAGRI MOT, MOFIN, EC

Y1 4 million

Improved animal and plant testing laboratory

MOAGRI DBOS Y2 500,000

45

7.0 INSTITUTIONAL FRAMEWORK FOR MANAGEMENT AND IMPLEMENTATION OF THE NES

7.1 The Strategy Support Network (SSN)

This refers to the network of public and private sector institutions to support export sector development

A strong institutional framework will be extremely critical to successful implementation of the strategy. The following issues however reveal an inadequate existing institutional framework:

Issues SSN

Absence of a strong enough partnership between the public and private sectors

Inadequate inter-ministerial coordination among the key ministries in the Strategy Support Network, in particular Ministries of Agriculture, Trade, and Tourism

Inactivity of the Trade Policy Review Committee

Limited availability of financial and human resources

An observed aversion in the public and private sectors to deriving synergies by effectively pooling and sharing of resources and networking.

DEXIA‟s delivery of its mandate to address the needs of exporters is deficient because the organisation is severely constrained by inadequate manpower and financial resources in carrying out this mandate

Possible Responses

Establish of a National Export Council (NEC) reflecting strong PPP in its composition, with membership from the TSN and the SDN, to oversee and monitor implementation of the National Export Strategy

Secure continued involvement of the ITC in the implementation stage of the NES

Restructure DEXIA to become a full-fledged Trade Promotion Agency (TPO)

Establishment of an NEC secretariat at DEXIA. On start up, the NEC Secretariat will require, at minimum, the following:

One Secretary to the Council

One Research Assistant with responsibility for monitoring and evaluation of the NES

A restructured DEXIA with a staff complement which includes:

One Trade Promotion Officer with responsibility for Agriculture and Agro-processing

One Trade Promotion Officer with responsibility for Cultural Industries and Tourism

One Trade Promotion Officer with responsibility for Professional Business Services and Energy and Natural resources

One Trade Information Officer

Request support from the ITC for technical guidance with monitoring and evaluation during Y1 of implementation of the NES

46

7.1.1 OMTI Institutional Perspective: Strategy Support Network Key Objective


To facilitate and reinforce competitiveness of Dominica‟s export sector through enhanced collaboration and coordination in policy formulation, implementation, among stakeholders

Level of collaboration and coordination within the SSN

Establishment of an institutional framework to ensure strengthened collaboration within the SSN by Y1

Enact and promulgate the NEC Act and Regulations. (Model already provided by ITC)

MOLEGA MOT, DEXIA Immediately (Activity 0)

1,963,520

Appoint NEC members to include members of the TSN and representatives from respective priority sectors

MOT

Cabinet, Respective Priority Sector Umbrella Trade Assns

Immediately after promulgation of Legislation and Regulations

Establish NEC Secretariat at DEXIA with budgetary allocation for its effective functioning

MOT Cabinet, MOFIN, DEXIA, Donors

Immediately on appointment of NEC members.

Degree to which resource requests are included and approved in the national budget

Full access to funding from national, regional and international sources

Consultations within the Ministry of Finance and other development partners to finance the National Export Strategy

MOFIN DEXIA, MOT, Development Partners

Immediately

Effective monitoring and evaluation of outcomes by the NEC

Quality of evaluation reports

Request technical guidance from ITC

DEXIA Min of Trade Immediately ITC

47

7.2 Services Delivery Network (SDN)

The Services Delivery Network (SDN) comprises a wide spectrum of quasi public and private sector agencies including utility companies, professional services associations, producer associations, regulatory bodies including Dominica Bureau of Standards (DBOS), the Independent Regulatory Commission (IRC), advocacy groups including the Dominica National Council of Women (DNCW), and training institutions.

Issues SDN

There is need for coordination and more synergies among associations within the priority sectors, in particular the agricultural sector

Umbrella organizations, where they occur, seem challenged by lack of resources for effectively fulfilling their mandate

Regulatory bodies suffer from lack of resources

Advocacy groups like the DNCW have not been adequately involved in policy making

Absence of a confederation or umbrella organisation of worker‟s associations

Possible Responses

Formation of umbrella organizations by trade associations in the respective priority sectors

Improved information exchange among trade associations in respective sectors

Mobilization of resources to ensure more effective services delivery by trade associations in the sector

Members of respective trade associations to get more involved in activities of the associations

Representation of sector associations on the NEC

48

7.2.1 OMTI: Institutional Perspective: Services Delivery Network Key Objectives


To ensure that support and services delivery agencies in the export sector are adequately resourced and coordinated to perform as required and meet expectations of clients

Level of activity by trade associations in the export sector.

Representation of trade associations on the NEC by umbrella trade organization

Establishment of sectoral umbrella trade associations where they do not exist. E.g.: formation of confederation of trade unions

Trade Assns

DEXIA, MOT, MOAGRI, MOTOUR, DDA, DEF, MOCDEV

Y2 100,000

Regular meetings of trade associations

Clarification and strengthening of mandate of sectoral umbrella associations where they exist

DEXIA

Mandate umbrella association to represent sector on NEC

DEXIA

Members of respective trade associations to become more involved in and support association activities

Umbrella Trade Assn, Membership of Trade Assns

Level of usage of services offered by individual members

30% increase in number of clients served by each member of the SDN by Y3

Support for organization of clusters within sectors

DEXIA

Umbrella Trade Assn

Expanded and intensified client outreach programme by each key member of the SSN

DEXIA Trade Assn

MOT, Development partners, Assn Members

500,000

Conduct professional training programmes for members of trade associations

Trade Assns

Umbrella Trade Assn, DEXIA

Y2

Provide secretariat support for effective functioning of umbrella trade associations

Trade Assns

Dominica Coalition of Services Industry, DEXIA

Y1 100,000

Conduct periodic satisfaction level surveys among respective association members.

DEXIA Trade Assn Members

Y2

49

8.0 FINANCING THE NES

Financing the implementation of the NES requires continued strong PPP. The summary indicative budget in table 8:1 below requires substantial allocation of financial resources.

The financing of interventions by institutions in the public sector is expected to be provided from annual national budgetary allocations. It is recommended that in cases where the private sector is the lead institution a combination of membership fees, user fees and project proposals to donor agencies can be used to finance interventions. It is expected that donor support for the budget will be seen within the Aid for Trade policy based on the absolute need for export development in Dominica as a response to globalization, the need to alleviate poverty and to meet the developmental goals anticipated from the implementation of the NES. It is also expected that funding for interventions in the NES will also be sourced from the Regional Development Fund under the EU CARIFORUM EPA. Manpower to support implementation of the NES will come largely from a restructured DEXIA and establishment of the NEC, and capacity building of key institutions in the services delivery network.

Table 8:1 – NES Indicative Summary Budget in EC$ for Major Expenditure Items Over First 4 Years

Item Estimated Cost (Preliminary)

Suggested Financing Source/s

Training 10,000,000 GoCD

Site Restoration Campaigns 10,000,000 USAID

Research & Development/Equipment 75,000,000 IICA, GoCD, UWI, CARDI, private sector

Quality/ packaging/labelling 8,000,000 CROSQ

Guarantee Fund, Seed Capital/Revolving Funds

50,000,000 GoCD, donors, private sector

Trade Missions/Shows/Promotion/branding 9,000,000 GoCD, private sector

Energy Development 1000,000,000 (1.0b)

French Government, EU, GoCD, private sector

Air and Sea Ports Development 2,000,000,000 (2.0b)

EU, CIDA, GoCD

NEC Secretariat (annual total excluding equipment) $484,380

1,963,520 CARICOM RDF

Regulation and compliance 600,000 USAID

TA 750,000

SDN Capacity Building 700,000 Trade Associations, MOT A consultation with donors would better inform populating of column3 in the table above.

It is anticipated that immediately on acceptance of the Strategy and promulgation of the NEC Act and accompanying Regulations; the NEC Secretariat would be established to facilitate immediate functioning of the NEC and hence official commencement of implementation of the NES. On establishment of the NEC, the staff complement of the NEC Secretariat would be one Secretary, one Trade Information Officer, and one Research Assistant.

The staff of the restructured DEXIA, which would be a full-fledged Trade Promotion Organization (TPO) to support the work of the NEC Secretariat, will include 3 Trade Promotion Officers (TPOs) and 1 Trade Information Officer. This staff compliment would strengthen the existing staff structure of the Market Support Services Department (MSSD) of DEXIA.

50

The total cost for Y1 is estimated at $510,380 broken down as follows:

Table 8:2 - NEC Budget for Year 1 in ECD

Staff No. Salary

p.a Allowances Comments Total Y1

CEO for the restructured DEXIA

1 120,000 20,700

CEO of DEXIA to serve as NEC Secretary Combined allowance at monthly rate of 1,725

140,700

TPO – Agribusiness and Agriculture

1 60,000 8,736 Part of restructured DEXIA

68,736

TPO – Cultural Industries and Tourism

1 60,000 8,736 Part of Restructured DEXIA

68,736

TPO – Energy and Natural Resources and Professional Business Services

1 60,000 8,736 Part of restructured DEXIA 68,736

Trade Information Officer 1 60,000 8,736 NEC Secretariat 68,736

Research Assistant 1 60,000 8,736 NEC Secretariat 68,736 Total 6 420,000 64,380 484,380

Supplies 6,000

Utilities Housed at DEXIA

Equipment Computers etc. 20,000 Grand Total $510,380 Travel allowance is set at $728 monthly; no payment budgeted for NEC members

Notes to OMTIs above

- In cases where it is assessed that initiatives can be addressed by existing staff of lead institution no resource indication is made

51

9.0 NES PRIORITY SECTORS

The following six (6) priority sectors were identified according to the criteria contained in

Section 4.2, Setting of Priority Sectors:

1. Agriculture: despite its decline has continued to be a major contributor to GDP with potential to continue to be a major contributor to rural employment.

2. Agro-Processing: has strong potential for backward linkages with agriculture and

forward linkages with community tourism but contribution to GDP remains small.

3. Cultural Industries: exhibits strong potential within CSME and EU markets and the

French-speaking world market, given Dominica‟s unique indigenous culture with a potpourri of influences. In this cultural context, Dominica‟s music can be an effective vehicle for selling Dominica‟s unique cultural endowments through integration of the visual and performing arts in development of the music industry.

4. Energy and Natural Resources: subsectors addressed here, especially water and

energy offer great promise as contributors to export earnings in Dominica. Dominica is reputed to have high water quality, which can secure premium niche export markets. The impacts of the energy sector are expected to be both direct and indirect. The direct contribution to export earnings hinges on an already identified market in the neighbouring French islands, while the indirect impacts will come from gains in efficiency in all sectors across the economy as a result of rippling effects of expected declines in energy costs.

5. Professional Business Services: This sector, especially construction and related services, is a major employment-creating sector in Dominica. Exports of these services have however remained small despite increasing international demand for such services under all modes of services supplied especially under commercial presence and other forms of partnership with international companies and through movement of natural persons. The emphasis placed on engineering, architecture and construction related services reflects market potential in the CSME and also opportunities presented under FTAs to partner with international companies. The market potential of an eco- building brand is also targeted in this strategy.

6. Tourism: Despite sluggishness in stay-over arrivals in recent years, Dominica‟s

tourism sector has shown, on average, strong annual growth since the early 1980s. A major contributor to this development has been increasing demand for eco tourism and experience tourism, Dominica‟s natural endowments and a continuing national policy to package Dominica‟s attributes in this regard. These supply and demand side trends are expected to continue as Dominica seeks to become a premier adventure destination.

The strategy for each sector, which follows, includes a diagram of the current value chain and of the future value options. In both diagrams components in the national value chain are denoted in green and in the external value chain denoted in grey.

52

9.1 Sector Strategy: Agriculture

9.1.1: Introduction

Despite internal and external challenges faced, the agricultural sector continues to be a significant contributor to GDP in Dominica ranging from 21.8% in the 1990s to an average ratio of 17.3% to GDP between 2000 and 2008. Importantly the sector exhibits reasonable gender balance with several successful female-headed farms. Women account for an estimated 65% of hucksters servicing the sector. The sector provides direct employment for roughly 4,904 full-time farmers with an additional number of part time farm employees estimated to be in excess of 2,000. In total, the sector currently accounts for an estimated 21% of the total labour force. Crop production continues to dominate activity while the contributions from fisheries, livestock, and forestry remain relatively small. The self-employment creation impacts of these subsectors in the agricultural sector are however significant, hence their inclusion in the long list of subsector priorities in the Draft Response Paper (DRP).

Of an estimated 4,904 farmers, 521 are engaged in root crop production and 144 in hot pepper production. Total acreages under production up to 2007, for targeted crops, are as follows: coconut- 20,842; dasheen -317; yam -231; tannia-99; and hot pepper -29. An estimated 45 farmers are engaged in coffee production on 22 acres of land.

9.1.2: Vision

To produce quality products for local consumption and exports, in order to ensure food security and make positive contributions to rural prosperity, poverty alleviation and environmental sustainability.

53

9.1.3: Key Issues Confronting The Sector

a. SWOT Analysis Strengths

Existence of fertile soil

Strong agricultural tradition and knowledge base

Existence of underutilized capacity

Capacity for producing a wide variety of crops

Attractive Fiscal incentives

Dominica‟s central geographic location in the Caribbean facilitating north and south bound shipping

Low levels of pests and diseases

Good climatic conditions

Cadre of tertiary level trained staff at various levels of the chain

Acknowledgement of gender balance in the sector (65% of hucksters is female)

Ongoing implementation of the agro-tourism development strategy

Weaknesses

Labour shortage (Border In – Capacity Development)

Aging farmer population – inability to attract youth, only 4% of farmers are reported to be under the age of 25 years, average farmer age is 55. (Border In – Capacity

Development)

Scale of production – average farm size is 5.7 acres (predominance of subsistence farming) (Border In – Capacity Development)

Lack of irrigation systems (Border In–Capacity Development)

Poor soil management systems (Border In – Capacity Development)

Difficult topography (Border In – Capacity Development)

Lack of land use planning (Border In – Capacity Development)

Weak extension support system (Border In – Capacity Development)

Lack of improved planting material (Border In – Capacity Development)

Inadequate R & D, and technology transfer (diagnostic) (Border In – Capacity

Development And Diversification)

Poor production planning and forecasting (Border In – HCD)

Poor record keeping (Border In – HCD)

Poorly maintained farm access roads (Border – Infrastructure)

Poor compliance culture among the majority of farmers (Border – Trade Facilitation)

Lack of legislative and regulatory enforcement (Border – Trade Facilitation)

Poor availability and high cost of inputs (absence of proper tissue culture laboratory facility) (Border – Cost of Doing Business)

High costs / low productivity and inconsistent production (Border – Cost of Doing

Business)

Uncompetitive prices (delineation needed between farm-gate, retail and export pricing) (Border – Cost of Doing Business)

High incidence of praedial larceny (Border – Business Environment)

Low priority given to marketing (Border Out)

Untimely dissemination of market intelligence information on target crops (Client –

Trade Information)

Lack of micro financing options and low levels of investments in the sector (Client –

Trade Finance)

54

Inadequate support for improved standards compliance and farm certification (Client –

Quality)

Inadequate synergies and collaboration among the service delivery agencies in the sector (Institutional – Quality of Services Delivery)

Opportunities

External shocks faced by banana industry will stimulate creativity and add impetus to diversification thrusts

Regional and International Market opportunities under FTAs

Develop a more commercially focused farming practice as a result of dismantling of preferential market access

Creation of a diverse agro-processing component

Diversification of product line

Increase scale and consistency of production through improved irrigation

Increasing interest in bio fuels

CARICOM Jagdeo Initiative on Agriculture

OECS Agriculture Policy

EU GoCD funded Agricultural Diversification Programme

Strong demand for Dominica‟s agricultural produce

Threats

Continued erosion of preferences and increased competition in targeted markets (Border Out – Market Access)

Increasing use of NTB and private standards as market entry requirements (Border

Out – Market Access)

Impacts of Climate Change

The perception of the agricultural sector, by financial institutions, as being high risk

55

b. Strategic Options This export strategy focuses on three (3) crop categories – root and tubers,

peppers/herbs and spices, coconut – in which Dominica has competitive advantages within the Caribbean and for which there is strong demand. These crops also have significant potential for linkages with the tourism and agro-processing sectors, and also potential for value added production within the sector. Attention is also given to coffee production based on demand side analysis, quality reputation of Dominica‟s coffee and opportunities presented under ALBA to develop the coffee industry into a high value added industry and major source of employment for rural populations in Dominica. Within the root crop group, target markets for dasheen continue to be the northern OECS islands, Guadeloupe, Martinique, USVI, BVI, Miami, and the UK. For coconuts (whole and grated, coconut oil) target markets include bakeries, hotels and restaurants in Barbados, Antigua, Anguilla, St. Martin and Trinidad, while there is identified demand for dry coconuts from Dominica in the UK and Miami. With respect to peppers, herbs, and spices the entire Caribbean market is targeted with existing major markets being the US.

The strategy therefore places emphasis on increasing production volumes, enhancing quality and reducing costs in order to improve competitiveness, and also value addition and creation. In this context standards compliance, dissemination of market information on target crops and market development and promotion are given priority attention. The strategy also pays attention to strengthening sectoral linkages by developing an agro-processing component for each targeted crop and also partnerships with tourism stakeholders and existing agro-processors.

c. Growth Trends The growth performance of Dominica‟s agricultural sector has been mixed in recent times exhibiting an overall declining trend from an average contribution of 21.2% of GDP during the 1990s to an average contribution of 17.3% since 2000. Similarly the trade data discussed above showed the declining contribution of the sector to export earnings.

The following table shows production and export performances of targeted crops over the period 2005 to 2007.

Table 9.1-1 Export Earnings for Selected Composite Crops

Commodity Production Volume (MT) Export Volume (T) Export ValueEC$’000

2005 2006 2007 2005 2006 2007 2005 2006 2007

Root crops Of which:

Dasheen Yam Tannia

13,925.18 9,691.28 4,279.72

13,776.54 9,716.04 4,282.26

13,784.61 9,743.74 4,292.37

615.41 89.1

82.38

492.6 107.9 84.4

499.2 129.2 92.6

2,383.1 670.9

552.08

1,901.1 666.5

527.51

1,869.3 975.4

750.41

Peppers Hot Other

238.9 180.9

219.7 181.4

102.9 180.6

36.7 1.2

21.2 1.6

3.3 0.9

234.6 10.84

131.7 15.8

33.1 12.1

Coconuts 32,049.22 21,386.13 21,537.07 331.2 336.9 358.6 571.47 427.36 663.33

Coffee 208.6 209 n/a 0.18 1.46 n/a 0.01 0.2 n/a

Source: Information Unit, Ministry of Agriculture

According to trade statistics from the ITC, in 2007, member countries of FTAs entered into by Dominica rank among the top 10 world importers of all targeted crops as follows:

56

Table 9.1-2 Top Twelve World Importers of Targeted Composite Crop Groups, 2007

Root crops: 0714 Coconut: 0801 Peppers: 0904 Coffee: 990122

(roasted and decaf)

Country Share of

World Imports

Country Share of

World Imports

Country Share of

World Imports

Country Share of

World Imports

China 44.41 USA 27.1 USA 21.16 Canada 13

Netherlands 9.94 India 14.18 Germany 9.14 USA 13

USA 9.52 Netherlands 8.8 Malaysia 6.86 France 11

Spain 4.96 UK 6.12 Japan 5.1 UK 11

Japan 4.87 Germany 4.89 Spain 4.09 Spain 8 UK 4.32 Australia 3.01 Netherlands 3.73 Belgium 7

Belgium 4.11 Viet Nam 2.57 Mexico 3.43 Germany 6

Republic of Korea

2.94 UAE 2.5 UK 3.02 Luxembourg 4

Canada 2.46 Canada 2.4 Singapore 2.91 Netherlands 4

France 1.97 France 2.32 Bangladesh 2.73 Austria 4

Chinese Taipei

1.53 Singapore 1.57 France 2.55 China 2

Italy 1.46 Russian Federation

1.47 Canada 2.18 Italy 1

Subtotal 92.49 Subtotal 76.93 Subtotal 66.9 Subtotal 84

Other 7.51 23.07 33.1 16

Total 100 Total 100 Total 100 Total 100

Jamaica and St Vincent and the Grenadines are listed as significant exporters of root crops to the US, France and the UK. Jamaica is also a significant exporter of pepper in those same markets.

d. Market Environment and How They can be Met

Increasing concern with issues of food security and health of populations spurred renewed interest globally in defining policies to stimulate agricultural production. As part of this trend towards healthy eating, increasing demand for naturally and organically grown and processed foods has emerged. In this framework Dominica and the rest of the CARICOM region have increased the level of priority given to policies to expand agricultural production both to ensure food security for the regional population and to increase the contribution of the sector to export earnings. In its response to this market environment, Dominica must, therefore, move to increase market led production, enhance competitiveness and develop its Nature Island brand image and its reputation of being the food basket of the region. The response must also include an aggressive programme to augment agricultural production to supply the agro-processing and tourism sectors.

The focus of the strategy, therefore, in addition to being demand driven, places emphasis on addressing challenges, which limit production of the selected crops. The strategy also focuses on further integration of the agricultural sector into the supply chain of the agro-processing and tourism sectors to thereby enhance its contribution to reduction of Dominica‟s import bill.

57

9.1.4: Mapping the Composite Current Value Chain for Selected Products

Land

Plant

Production

Processes

Inputs &

Supplies

Local

Consumer

Market

Shipping/

Hucksters

Distributors/

Agents

Agro

Processing

Fresh Produce

Market

Consumer

Prep for Export

(Drying, etc)

Harvesting

Planting

Land Clearing

Hot Sauce

Soaps

Pepper Sauce & Mash

Dried Coconuts

Coffee

Mostly directly to consumers,

supermarkets and very little to

agro-processors and hotels

Foreign

Wholesale &

Retail

Local Agro

Processing

Foreign

Wholesale &

Retail

58

Value Options

Improve Efficiency

Ongoing education of farmers on importance of compliance in sustaining markets.

Phytosanitary requirements of target markets should be made available to current exporters.

Programmes to ensure transparent and efficient application of procedures by Quarantine Officers at ports of entry.

Targeted training for farmers who are willing to make the transition from subsistence farming to commercial farming

Access to concessionary credit by targeted farmers to facilitate commercialised farming

Improved maintenance of existing feeder road network

Initiative to assess existing sea freight capacity and to coordinate a system of shipping schedule, awareness of exporters of existing capacity and shipping schedules and cargo consolidation.

Increased volume and regularity of air freight cargo could result in lower unit cost of air freight

More effective extension services to support production

Enforcement of existing legislation to minimise the incidence of praedial larceny

Training farmers on the importance of marketing to production planning and farm viability

Timely supply of agricultural inputs and extension services

Exposure of producers to target market conditions and preferences

Increased coordination among producers, exporters and shipping lines/agents

Minimize Leakages

Possibility of local ownership of dedicated shipping line.

Investment in a tissue culture lab

Developing local certification bodies

Increased production for agro-processing and tourism sectors

Add Value

Use of the‟ nature island‟ brand in packaging

The recognition of Dominica‟s fresh produce by buyers in target markets as having longer shelf life needs to be packaged, through enhanced packaging and branding

Ongoing programmes to maintain quality ratings linked to branding

Processing of fresh produce e.g. frozen dasheen, ground coffee, coconut oil and grated coconut for export

Create Value

Development of the agro-business subsector

Develop agro-tourism linkages

59

9.1.5: Mapping Composite Future Value Chain for Target Markets

Land

Plant Production

Processes

Inputs &

Supplies

Pack Houses Shipping/

Hucksters

Distributors

/Agents

Fresh

Produce Market

(Fully

Certified

Products)

Consumer

Transportation

Prep for Export

& Local

Processing (Drying, etc)

Harvesting Planting

Land

Clearing

Existing Products

New Products:

o Coconut - oil,

milk, grated

o Frozen root crops

o Branded condiments

o Seasoning pepper

mix o Coffee

Local Tissue

Culture Labs

Seedlings

from Local

Greenhouses

Inputs &

Supplies

Inputs

Supplies

Seedlings

Certification

& Testing

(fresh &

partial

processed

products)

Transportation

Services

Hotels

Restaurants

Agro

Processing

Local Consumer

Fresh Produce

Market

Supermarkets

Wholesale

& Retail

60

9.1.6: OMTI Matrix Strategic Consideration No 1: The Development Gear of National Export Strategy


Employment Generation: To raise employment as a direct result of increased agricultural exports

Actual number of new full-time and part-time direct employment created

100 new full time and 200 new part-time workers by end of year 1.(An estimated 1% of the workforce)

Appoint an interagency committee to advise on selection of appropriate technology while paying attention to the employment goal

MOAGRI IICA, UWI, CARDI

Immediately

Establishment of an employment agency to service targeted farms

Private sector

MOAGRI 1st Qtr.

Poverty Reduction: To reduce poverty as a direct result of improved export performance in the agricultural sector specifically of the targeted crops

Number of growers in areas with high incidence of poverty brought into the supply chain of other sectors, particularly agro processing and tourism

100 in the south east in 2 years 50 in the south west in 2 years 100 in the northeast in 2 years

Approach donor agencies for seed capital to establish at least one micro-finance facility targeting existing, potential and aspiring exporters in farming communities with high unemployment rates

MOAGRI, MOECON

MOFIN, DEXIA

Immediately 150,000

Conduct of a survey of households in areas of high incidence of poverty to do an inventory of existing and potential home based businesses and to link them to the supply chain of farmers in their respective areas

CSO, DEXIA

MOAGRI 2nd

Qtr

Rural Development: To ensure rural communities benefit from improved export performance in the sector

Level of public sector infrastructure development projects undertaken to facilitate export development in rural areas

At least 5% annual increase in budgetary allocations for feeder road maintenance in rural areas from Y1 At least 1 new feeder road constructed by Y4

A campaign to ensure that expenditure on feeder road development and maintenance of road networks in rural areas in the north east, south east and west coast communities continue to be given priority

MOAGRI MOFIN Y1

Development of Disadvantaged Groups (youth and Caribs)

Level of emphasis placed on directing public and private sector investments in the sector to impact on the

200 young aspiring entrepreneurs receiving assistance from the trade support network by end of

Undertake a campaign to direct at least 30% of the portfolio of existing micro and special funds to the youth and also young aspiring Carib entrepreneurs in the sector:

- by engaging the AIU.

MOAGRI Youth Division, DSC, MOT

Immediately MP

61

Strategic Consideration No 1: The Development Gear of National Export Strategy


youth and Caribs Y4

- by holding of focus group sensitization meetings

- Engage the Small Business Unit in the Min of Trade

- Engaging the Youth Division and DYBT to specially target these groups in their programmes

- Engage institutions involved in youth at risk rehabilitation programmes in order to ensure that rehabilitated youth can participate in the export development drive in the Agric. Sector

Number of geographic clusters created within the sector

3 clusters by Y2 Embark on a cluster development support programme targeting communities with the highest incidence of unemployment among the youth, with specializations that result in economies of scale in purchasing, production and marketing.

DEXIA/ Business Gateway

MOAGRI Ongoing Additional funding of about 100,000

62

Strategic Consideration No 2: The Border-In Gear of Strategy: Developing the Supply Side of High Potential Export Sectors: Focus on Capacity Development, Capacity Diversification and Human Resource Development.


Capacity development: To develop the supply side capacity within the sector to meet export demand and unsatisfied domestic demand

Level of output of targeted crops:

Dasheen

Peppers

Coconut

Coffee

20% increase annually from Y1

100% increase annually

100% increase within 3-5years

200 acres by Y2

Campaign to increase yields by: - Priority on implementation of already

funded productivity/production enhancement project to be done forthwith

- Increase contractual production by including private sector entities in addition to DEXIA in present programme with farmers.

- Establish an irrigation system to effectively maintain production during the dry season (Feb to May)

- Design an aggressive marketing strategy to induce farmers to participate and invest in the production drive

- Timely upgrading of tissue culture lab - Ensure efficient use of mechanization

tools already received by the Ministry responsible for Agriculture

- Facilitate farm worker brokerage service - Encourage land leasing to landless

entrepreneurs

MOAGRI Private Sector, DEXIA

Y2

500,000

Donor Agencies

Y1

600,000 (Chinese)

Campaign to bring idle lands into production by: - Urgent review of the land use and land

tenure policy to allow utilization of idle land and leasing of Govt land for production.

Initiatives to encourage the creation of micro finance facilities to supplement resources now available and to seek additional financial resources for the AIU.

MOAGRI DEXIA, Private Sector

Y1

63



Level of standards implementation at farm level

50% certification of farmers by Y2

Develop GAP specific to targeted crops, which meet international standards.

Ensure that DBOS has access to the necessary resources to deliver on this mandate as a priority activity

DBOS, MOEDU

IICA, CARDI,

Immediately

Increased efficiency and cost effectiveness in post harvest handling/ technology

50% utilization of pack houses within one year

Ensure efficient delivery of services at pack houses by ensuring that: - there is awareness of the provisions of

the Fresh Produce Act among farmers - farmers are provided with adequate

training to meet requirements of the Act - there is enforcement of provisions of the

Fresh Produce Act

DEXIA MOAGRI, DBOS

Y1

Level of availability of productive farm labour

50% of farmers producing targeted crops report no labour shortages by Y2 and 100% by Y4

A more efficient method of sourcing farm labour available within the CSME (Haiti).

Private Sector Companies

MOAGRI, MOT

Immediately

Capacity Diversification: To diversify the export base into new high value product lines and associated products

Number of value added products in the sector. Increased linkage with the agro-processing and tourism sectors

At least 3 new value added products by Y2:

Seasoning pepper powder

Frozen(peeled) /parboiled dasheen, tannia

Coconut oil, grated coconut, coconut cream

Packaged ground coffee

Increase investments in R&D.

Capitalize AID Bank to make concessionary credit available to participating farmers and agro-processors.

MOAGRI MOFIN, Private Sector, IDA

Y1 2,000,000

Undertake product specific market research and promotion missions in Barbados, Antigua, Trinidad and Tobago, UK and Eastern coast of US (cities with large Diaspora populations)

DEXIA Targeted Exporters, IDA

Y1 5,000,000

Establish a task force to select participating farmers and focus initiatives on targeted farmers

DEXIA MOAGRI 1st Qtr

Campaign to attract direct investment into the sector

IDA MOAGRI, DEXIA

Y1 50,000

64



Human Capital Development To raise the skills base within the sector and to promote entrepreneurship

Number of post training visits by extension officers to exporters of targeted crops

At least 2 visits by extension officers to each farm within 6 months of start of campaign

Assign specifically trained extension officers to geographic zones or to specific farmers

Introduce a system of registration of visits by extension officers to be maintained by producers of targeted crops

MOAGRI DEXIA 1st Qtr

Age profile of farmers attracted to the sector. (Less than 5% of farmers currently below 25.

50% of new farmers over the next 5 years under the age of 30.

Adaptation of the curriculum across the school system to more adequately cover agriculture

MOEDU DSC, Private Training Institutions

Y2

Level of management competency of existing farmers

10 farmers enrolled in ICT training programmes by end of 2

nd Qtr

40 farmers enrolled in adult education programmes before end of Y1

Train at least 50 farmers in management competencies follows by the end of Y2, specifically in: o record keeping, o financial

management o negotiating skills

A campaign to sensitise farmers to importance of good management skills to viability of farm operation

Local Government agencies.

MOAGRI, DEXIA

Y1 MP

Engage the adult education division to design a specific programme taking into account the existing proficiency levels and objective of the initiative and also the need for English training for Haitian farm workers

Undertake a drive to encourage farmers to participate in training programmes

DEXIA MOAGRI

Design a training delivery mode that the farmer can relate to

Adult Education Division

MOEDU, IICA, CARDI, DEXIA

Encourage private service providers to get involved in offering the training

Min of Agric

65

Strategic Consideration No 3:The Border Gear of Strategy- Improving the Business Environment and Minimising the Cost of Doing Business


Infrastructure: To ensure that the physical infrastructure in the country is conducive to sustained improvement in the sector‟s export performance

Improved port facilities

Provision of cargo consolidation services by end of Y2

Allocation of space at the newly constructed pack houses for cargo consolidating

DASPA, MOFIN, MOPOR, Private Sector, DHA

Y2

Availability of sea and air freight facilities

Well coordinated cargo consolidation to fit into schedule of shipping lines within 6 months

Establish a coordinating point to work out schedules with shipping lines to ensure shipping requirements of all exporters are met on an ongoing basis

Private sector

Shipping agents, DASPA

By 2nd

Qtr

A campaign to inform air cargo operators/handlers of enhanced capacity at MHA (consolidation shed)

DASPA Private Sector Immediately Y2

Condition of farm access roads

Rehabilitation of 20% of farm access road networks within 2 years

Ensure expeditious implementation of the ongoing feeder road rehabilitation programme

MOWKS, MOFIN

DEXIA Immediately

Incidence of praedial larceny

Reduction in incidence evidenced by the absence of reports by farmers by Y3

Undertake a campaign to encourage farmers to report incidence of praedial larceny to the Min of Agric.

Enforce existing laws and regulations relating to farmer registration

MOAGRI Police Dept. Immediately

Trade facilitation: To minimize regulatory and procedural requirements within the sector

Level and simplification of customs and port procedures

Launch of ASYCUDA World before end of Y1

Reduction of customs processing time from 3 days to 2 days

Ensure timely completion of ongoing Customs modernization and simplification project

DASPA, Customs Dept

Min of Fin Immediately Ongoing

Lower port charges Transition from FOB to FAS terms of payment of exporters by end of Y1

Multitask force team comprising trade unions, shipping agents, DASPA, Min. of Fin., Min. of Trade to address the matter

MOPOR DEXIA,DAIC, DASPA

Immediately

Cost of Doing Business: To minimize

Cost of delays to shipping lines carrying agricultural

No displacements of freight lines carrying agricultural exports

Establish an inter Ministerial committee to ensure ship berthing schedules that do not disadvantage

DASPA DEXIA, MOT Immediately

66



indirect costs of exporting

exports during heavy traffic periods at the ports

freight lines carrying agricultural exports

Strategic Consideration No 4: The Border–Out Gear – Improving Market Access and Exploring Commercial Opportunities


Market Access To secure best possible access to regional and international markets

Level of transparency in application of market access provisions of FTAs entered into

Full compliance with provisions of FTAs entered into, especially in Barbados and other Caribbean markets

Secure inclusion of a sensitization programme in the regional sensitization agenda to focus on educating traders and enforcement officers respectively of their rights at all CSME borders.

MOT, Regional Institutions

DEXIA & Stakeholders in the private sector

Immediately

Utilisation of e-commerce and web based applications as marketing tools

50% of exporters linked to ICT applications by end of Y4.

Create a national website for the agricultural sector with links to other private stakeholder web addresses

DEXIA NEBI, Private Sector, CARICOM

By 2nd

Qtr. Ongoing by CARICOM

Conduct training programmes in e-commerce competencies for targeted farmers

MOTELE DEXIA Y1 50,000

In-market Business Support To provide the sector‟s exporters with a full service advisory and support programme in major markets

Level of market linkages established

Linkage of exporters of each targeted produce with major distributors/retailers in each targeted market by year 1

Undertake a target market segmentation analysis in: UK, CSME, east coast USA, Martinique, and Guadeloupe, France, to include the Caribbean Diaspora in those markets.

DEXIA/TBG NAO, MOFIN, MOT, MOAGRI

1st Qtr 60,000

Promotion To establish a positive image to reinforce the sector‟s competitiveness and export effort

Growth in market share in targeted markets

20% growth annually for each target market by year 2

Conduct target market studies building on existing studies undertaken by WIBDECO, DEXIA/TBG

DEXIA Private sector Immediately 50,000

At least one promotion mission in each target market annually

Allocate financial resources for undertaking promotion missions

MOAGRI DEXIA, MOT, IDA

2nd

Qtr 200,000

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Strategic Consideration No 4: The Border–Out Gear – Improving Market Access and Exploring Commercial Opportunities


Ongoing marketing and advertising campaigns

Establishment of a core team to prepare advertising and promotion material for the sector

MOAGRI DEXIA 2nd

Qtr MP

Strategic Consideration No 6: Trade Support Services: Export Competency Development


To ensure that exporters of dasheen, coconuts and seasoning peppers and all entrepreneurs along the value chain have the competency to achieve sustained market access

No. of persons who have attained the desired competency level

15% of targeted farmers by Y1 and an additional 15% annually thereafter

Establishment of a task force to plan and coordinate implementation of an:

DEXIA MOAGRI, MOT, Private Sector

2nd

Qtr MP

Expanded outreach and advisory services campaigns focusing on targeted farmers

MOAGRI, Private Sector

2nd

Qtr

MP

Introduction of export management procedures, training and business counselling programmes

MOAGRI, Private Sector

Y2 100,000 (IICA)

Strategic Consideration No 7: Trade Support Services: Trade Information


Informed agricultural sector with respect to market information including SPS and TBT issues

Number of targeted farmers acknowledging receipt of information on: - consumer preferences and

market entry requirements for coconut, dasheen and seasoning peppers in the Caribbean market with emphasis on Antigua, Anguilla, Barbados, St Kitts, St Martin, Martinique and Guadeloupe, in the UK and cities on the US east coast.

Information material prepared within 2 months

Prepare information package and plan modes of delivery confirmed to cater to different education levels of farmers, including illiterate youth, exporting targeted crops

MOAGRI DEXIA 3rd

Qtr DEXIA

At least 20% of targeted farmers having access to information package by end of Y1.

Create a local commodity index and market forecasting capability

DEXIA MOAGRI, MOT

Ongoing CARICOM

Disseminate information on requirements of the Fresh Produce Act

DBOS

Number of training sessions conducted in use of the information disseminated.

10 training sessions within 3 months of completion of training material

Undertake a needs survey among producers of targeted crops

Consultant commissioned by DEXIA

MOAGRI, MOT

2nd

Qtr 50,000

Design of specific trade information training and

DEXIA MOAGRI, IICA, MOT,

Y2

68



dissemination programmes to equip extension officers to effectively deliver information to producers of targeted crops.

CARDI

Availability of comprehensive production statistics on targeted crops

Compilation of production statistics on targeted crops by Min of Agric by end of Y1

Design or enhance data collection questionnaire to be used by extension officers

MOAGRI DEXIA 3rd

Qtr MP

Strategic Consideration No 8: Trade Support Services: Trade Finance


To ensure that enterprises have adequate access to finance for pre and post shipment activities

Cost of credit available to enterprises in the agricultural sector along its value chain for:

lending for enterprise development and expansion

provision of supplier‟s credit

export credit insurance and guarantees

Introduction of innovative collateral requirements tailor made for the sector within 1 year

Introduction of at least one new seed capital fund for micro businesses in the sector, within 6 months

introduction of an export credit insurance and guarantee scheme for non banana farmers

After year 1 50% reduction in nonperforming loans among enterprises in targeted subsectors

Formation of a technical task force to engage the financial institutions, mindful of risk factors, to design collateral requirements, which are less onerous for small agricultural enterprises participating in the export drive.

DEXIA MOFIN 2nd

Qtr

Increase resources available to the Agricultural Investment Unit

MOAGRI MOFIN, MOT, DEXIA

Y1

Increase financial resources available to the Small Business Unit

MOT MOFIN, DEXIA

Y1

A policy to provide special crop insurance facilities for non-banana crops

Private Sector

MOAGRI Y1

Collaboration with other ECCU member countries to request an urgent review of the existing export credit guarantee scheme

MOFIN

MOT Y2

Establishment of a monitoring system to record/report debt service performances of participating farmers

Participating Financial Institutions

DEXIA, MOAGRI, CSO

Y1

Introduce policy to facilitate financial institutions in accommodating farmers following natural disasters through extended moratorium.

MOAGRI MOFIN Y2

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Strategic Consideration No 9: Trade Support Services: Quality, Packaging and Labelling


To ensure that exporters are fully compliant with the Fresh Produce Act and its Regulations

Certification of exporters

100% certification by end of Y2

Undertake public awareness/sensitization programme for stakeholders

DBOS MOAGRI, DEXIA, Distributors, DHA

3rd

Qtr

Certification of fresh produce

100% certification Ensure that all fresh produce for export is processed in a certified pack house


3rd

Qtr 500,000 Strengthening of plant protection and animal

health safety lab facilities

MOAGRI DBOS Y2

Certification of all pack houses

100% certification Audit existing pack houses

Upgrade deficiencies identified in audit

Train all pack house operators

Ensure that pack houses operate on a commercial basis


3rd

Qtr

To increase value retention within the sector through provision of relevant packaging products and services

Existence of national labelling standards

Preparation of a manual on national standards by end of Y2

Engage DBOS to give priority to drafting national labelling standards

DEXIA

MOAGRI, MOT, MOFIN

2nd

Qtr

Support DBOS with the necessary resources to expedite its expanding work programme in the area of standards development

MOT Y1

Existence of a national brand

Disseminate standards among farmers/businesses

Commence consultations

DBOS MOFIN, MOAGRI, DEXIA

Y1

National Brand launched

Employ consultant to work with DBOS on developing the brand

Consultations to endorse brand

DBOS All Export Sector Stakeholders

Y3

Compliance with international packaging and labelling standards

50% compliance by Y2

Financial resources to build up capacity of DBOS and other SQAM service providers to work with packaging company (DHA) to develop labelling to international standards

MOT MOFIN, DEXIA

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Strategic Consideration No 11:Strategy Support Network – Leadership, Coordination and Structure


To ensure competitiveness through coordinated policy planning and implementation within the strategy support network

The level of policy coordination within the sector‟s strategy support network, with particular emphasis on the areas of competitiveness enhancement and market development :

- Min of Trade - Min of Agriculture - Min. of Works - Min of Finance - Min. of Education

Formation of the NEC with representation from the SSN and SDN

Immediate establishment of the NEC by: - Putting in place the Legislative and

Regulatory framework for the NEC - Appointment of members to the

NEC - Allocation of resources for the NEC

Secretariat - Appointment a representative of the

sector trade associations to the NEC

MOT MOAGRI, MOFIN, Trade Assns in the sector

Immediately

Strategic Consideration No 12:Services Delivery Network (SDN) – Quality and Capacity, Cost, Synergy and Coordination


To ensure that the service delivery institutions in the sector are well coordinated to function effectively

Coordination within the SDN: - WINFA - DBPL - Coconut

Producers Association

- DBOS - AID Bank - NDFD - CARDI - IICA

Establishment of an umbrella organization to represent all service delivery agencies in the sector by the end of Y1

Convene a meeting of all service delivery organizations/groups in the sector to discuss the benefits of forming an umbrella organization to represent the sector

DEXIA MOAGRI, MOT

Immediately

Appointment of a steering committee to plan an approach for formation of the umbrella organisation

Trade Assns DEXIA, MOAGRI

A schedule set for periodic meetings of the of the umbrella organization formed.

Umbrella Org Trade Assns

Coordinated production of targeted crops, coordinated delivery to pack-houses and coordinated distribution from pack-houses by end of Y1.

Creation of a production management entity (like the DBPL for bananas) for targeted crops

MOAGRI

Ratings by clients of members of the SDN

10% annual increase in satisfaction rating from Y2

Introduction of a quarterly level of satisfaction with SDN members survey, among targeted exporters and potential exporters in the sector

Umbrella Org DEXIA

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9.2 Sector Strategy: Agro Processing

9.2.1: Introduction

The Agro Processing sector in Dominica is characterized by small to medium scale enterprises, which together employ an estimated 100 persons. They, however, contribute significantly to forward and backward linkages within the economy with positive social and economic impacts particularly among farming communities in rural areas.

The sector is served by the Dominica Chamber of Agri-business (DCAB) which was established in 2007. DCAB currently has membership representing stakeholders across the sector including the Dominica Essential Oils, DHBA, Dominica Honey Bee Association, Dominica Green House Association, Dominica Pig Producers Cooperative, Dominica Poultry Association, Dominica Rabbit Breeders Association, NIPPA, DOAM, NAYA, BELLO, consultancy firms and IICA.

Comprehensive employment data for the sector is not available but raw estimates indicate that the sector employs roughly 5% of the labour force.

Priority sectors focused on in the strategy are: beverages, condiments, essential oils based on identified markets in the Caribbean, US, and UK. The basis for this selection includes market trends and development impacts already discussed. This sector is particularly important because of its strong potential for increased backward linkages with the agricultural sector and forward linkages with tourism.

9.2.2: Vision

To be a major contributor of export earnings in Dominica, through enhanced competiveness and producing natural products, which meet international standards.

72

9.2.3: Key Issues Confronting the Sector


Use of agricultural raw materials with a reputation of being naturally grown with vast organic potential (Dominica‟s nature isle image)

Recent trend towards formation of services delivery associations within the sector

The Business Gateway Project concept adds value but implementation must be monitored

Participation in ongoing ICT skills development project of the Ministry of Telecommunications and management competency enhancement programmes of the E-business Incubator Project

Serves as a market for agricultural output and an outlet for excess/waste from the agricultural sector (backward linkage with agriculture)

strong commitment from sector players to source locally, although challenged by unreliable supplies

Some evidence that locally produced agro-products is used by other sectors. However, there is still vastly underexploited opportunity.

Weaknesses

Scale issues, low productivity particularly of labour (Border In – HCD)

Management competencies need to be strengthened to effectively respond to workplace challenges and to the increasingly competitive external market environment (Border In – HCD)

Limited use of e-commerce (Border In – HCD)

Inadequate investment in Research and Development/Equipment (Border In – Capacity

Diversification)

Inadequate business incubators (Border In – Capacity Development)

Poor contractual enforcement culture along domestic supply chain (Border – Trade

Facilitation)

Unreliable and inefficient cross-border transportation services (Border)

Time consuming and unduly bureaucratic Customs procedures (Border –Trade

Facilitation)

High energy, internet and raw material cost (Border – Cost of Doing Business)

Lack of market intelligence (Border Out – In-Market Support)

Inadequate market intelligence dissemination (Client – Trade Information)

Available credit is too expensive (Client Perspective – Trade Finance)

Inadequate institutional support (Institutional Perspective – Leadership)

Weak networking relationship between the SSN and the SDN (Institutional –

Leadership) Opportunities

Dominica‟s membership to the EU/CARIFORUM EPA and the CSME. Processed foods are on the list of sensitive goods under the EPA on which CARIFORUM will not be required to remove tariffs, but qualify for duty-free and quota free entry into the EU. In addition to duty free access in the CSME, Dominica‟s agro-processed products are reputed in Caribbean markets to be of high quality.

Increasing health awareness and market demand for healthy food choices by consumers which Dominica can capitalize on by using the Nature Island brand and by niche marketing

Linkages to community based tourism

Threats

Lack of transparency in application of standards requirements in target member countries in the CSME

Possibility of prolonged recession in the global economy and its implication for effective demand by consumers generally

Imposition of EU REACH

Increasing use of NTBs in export markets and high cost associated with compliance in some cases

73

b. Strategic Options for the sector include the following: Investments to improve technology and product quality to become more competitive

and maintain and grow market share

Initiatives to reduce production costs and improve efficiencies to become more competitive

Initiatives to identify new export opportunities targeting the CSME, and Diaspora niches in the US and the UK.

Initiatives to achieve and maintain international standards along all domestic links in the value chain

Initiatives to achieve value retention in the areas of standards development, certification and national branding

Initiatives to strengthen forward and backward linkages within Dominica (specifically with agriculture and tourism)

c. Growth trends and market environment This sector faces an intensely competitive market environment and increasing impositions of Technical Barriers to Trade (TBTs) that require ongoing investments in pursuit of efficiency and the development of standards.

Contribution of agro-processing to Dominica‟s GDP, though showing promise, has remained sluggish and has been estimated to account for about 25% of total contribution of the manufacturing sector to GDP.

Within the sector above average export performances were observed for beverages – seamoss, condiments – hot pepper sauces, and essential oils – bay oil. Market demand for these three products is reported to be driven by more discerning consumers searching for healthier, natural foods, and alternatives to artificial foods, flavours, inputs and products. In the beverage group coffee production in Dominica remains very small. As a result, despite its reputed high quality, Dominica‟s coffee has not emerged as a significant export product. Focus is placed in the strategy for agriculture to stimulate production of coffee as part of the supply and value chain though the development of a coffee processing plant in Dominica to be financed by donor friendly Governments.

This market demand environment coupled with Dominica‟s reputation for naturally grown agricultural production, has sustained the sector over the years, and is becoming increasingly evident in the CSME, EU and in the US markets.

74

9.2.4: Mapping the Current Value Chain

Plant Production

Processes

Inputs &

Supplies

Transportation/

Storage

Shipping/

Freight

Insurance

Broker

Local

Supermarket/

Consumer

Distributor

Transportation

Preparation at Farm

level (Drying, etc)

Harvesting

Planting

Land Clearing

Foreign

Wholesale &

Retail Consumer

Processing

Bay Oil

Pepper Slush

Copra, etc

Local

Manufacturer

Agro Processing/

Manufacturer

Bay Rum

Pepper Sauce

Beverages/Snacks

Herbs & Spices

Soaps

75

Value Options

Improve Efficiencies

Assistance from the Ministry of Agriculture, the DBOS and other research organisations to provide support for R&D, standards setting and improved labelling. Establish tissue culture lab and plant protection and animal health testing facilities.

Joint procurement and joint manufacturing (where feasible) through DCAB and the Agro-Processing Association and the rest of the manufacturing sector

Increased direct marketing to outlets in Dominica where tourists eat.

Unreliability and cost of small local schooners could be addressed through a regional intervention to address the shipping problem through consolidation of shipments.

Relationship with farmers can be strengthened through enforceable contractual arrangements.

Increase ratio of finished branded and privately labelled goods relative to bulks

Standards maintenance through ongoing support from standards and certification agencies in Dominica. Early commissioning of the NCTE recommended.

Possibility of making sachets for hotels, so pepper can be in KFC-type sachets size

Minimize Leakages

Possibility of employment for locals at agro processing plants financed from foreign sources

To the extent that foreign investors are attracted to the sector following its development from implementing of this strategy, opportunities for reinvestment of earnings will occur.

With commissioning of the NCTE tests currently done overseas in terms of nutritional analysis, shelf life study, product analysis and evaluation could be done locally

Add Value

Manufacture of branded finished products

Product differentiation through better research of health attributes, for further product development, label design and development

Scope for capitalizing on buyers‟ preferences though market segmentation which is already being considered, babies, sportsmen, medicinal, special beverage for school feeding programme. Support of DBOS and Produce Chemist Lab. Company already approached by the Food and Nutrition Council in this regard and actually offered to help in sourcing funds

Opportunities for standards development across the Agro processing sector by the DBOS

Create Value

Create backward linkages to agriculture

Potential for developing insecticides, pesticides, disinfectants, veterinary and other products

Possibility of supplying component of the fractionalizated oil to Colgate Palmolive

Possibility of becoming part of the sector‟s supply chain e.g., essential oils, coffee, coconut milk, seasoning powders

Co-manufacturing through formation of clusters and networking among clusters and associations

Supply of recipes and fruit pulp and preserves to restaurants, hotels, bakeries etc.

76

9.2.5: Mapping the Future Value Chain

Improved standards

& certification

services and R&D

Plant Production

Processes

(INCREASED

PRODUCTION/

WIDER

VARIETIES)

Inputs &

Supplies

Transportation/

Storage

Shipping/

Freight

Insurance

Broker

Local Consumers

Supermarkets

Hotels/Restaurants

Distributor

Transportation

Preparation at Farm

level (Drying, etc)

Harvesting

Planting

Land Clearing

Foreign

Wholesale &

Retail

Consumer

Bay Oil

Pepper Slush

Copra,

Dry Herbs &

Spices, etc

, etc

Bay Rum

Pepper Sauce

Beverages/Snacks

including coffee and

coconut snacks

(additional flavours)

New Herbs & Spices

Soaps

Natural Insecticides

Household

Disinfectants &

Cleaners

Local

Manufacturer

Agro Processing/

Manufacturer

Processing

77



To raise employment as a direct result of increased export activity in the sector

The number of new full time and part time workers employed in the agro processing sector

50 new employees by the end of Y2

A programme of risk management training for the AID Bank and Credit Unions to better service the credit needs of the sector, including all participants in the value chain especially in the agricultural sector.

Trade Assns in the sector, teaming up with consulting firms

MOT, MOAGRI, DCAB

Y1

Undertake a campaign to support the AID Bank in sourcing funds which can be on-lent at less burdensome rates to agro-processors – a maximum of 6%.

MOFIN MOT, MOAGRI

Y1

Number of young people from rural areas enrolled in tertiary level programmes in preparation for employment in the sector.

One young person enrolled every two years during the first four years

An outreach programme to attract tertiary level graduates to the sector by granting scholarships of merit to secondary school graduates to study food technology.

MOEDU DCAB, MOT, MOFIN, UWI

Y2

To reduce poverty as a direct result of improved export activity in the sector

The number of farmers supplying agro-processors involved in exporting

10 new farmers by the end of Y2

A programme to link farmers – sea moss, pepper, patchouli, passion fruit, coconuts, seasoning pepper, hot pepper, coffee with targeted agro-processors and ensure that they have the necessary inputs to produce according to quality, volume and regularity specifications of agro-processors.

MOAGRI DCAB, IICA, CARDI, UWI

2nd

Qtr

Number of agro processors supplying the tourism sector

5 new agro processed products being supplied to hotels by end of Y1

A campaign to engage hotels on a one-on-one basis to agree to an approach to get them to include local agro processors on their list of suppliers

Twin agro processors with hotels, restaurants and souvenir shops

Link agro processors to supermarkets

Linkage programme to community based tourism

DCAB, DHTA MOAGRI, MOTOUR, DEXIA

2nd

Qtr

78



A training programme to enhance product presentation skills of small agro processors

MOAGRI Private consultants, MOT, DBOS

4th Qtr

No. of community based tourism and agro-processing linked experiences operational

10 linkages established by Y3

Campaign for agro-processing to be viewed as a component of the tourism product

Programmes developed around themes of: o Show and tell o Show and smell o Agro-aerobics o Hands on culinary experience o Promote successful case studies

MOTOUR MOAGRI, IICA, AID Bank, MOCDEV, Social Centre

Immediately

To promote development of rural areas

New public sector infrastructure projects to support participants in the supply chain in the south east and east coast of the island

Improved farm access/quality of feeder roads in farming areas by Y2.

Embark on a major feeder road rehabilitation programme

MOWKS MOFIN Y1

To minimize adverse environmental impacts of agro processing plants in the export sector

Number of complaints of environmental degradation by environmentalist advocates and other stakeholders in the locality

No complaints by Y3

Put in place environmental impact management guidelines to be adopted by existing and new agro-processing businesses. Involve all stakeholders including environmental advocacy groups in drawing up guidelines.

ECU MOAGRI, DCAB, DBOS, DOWASCO, Water Bottling Companies, Forestry Div, DDA

Y2

79



Capacity Development: To develop supply side capacity within the sector

Level of excess capacity in the agro-processing sector

50% reduction in excess capacity in the sector and 30% increase in output by the end of year 2

Product development programmes to increase sales of bay oil, bay rum, beverages, and pepper sauce in the CSME, through technical assistance support and engaging the AID Bank and NBD to make lower interest rate loans available to agro-processers

DEXIA

DCAB, DHA, Trade Assns

Y1

An investment promotion campaign to attract capital for modernizing technology – plant and equipment

IDA DBOS, MOAGRI

Engage farmers on a one-on-one basis to sensitise them to the benefits of adhering to contractual supply arrangements entered into

Trade Assns MOT, MOFORA, DEXIA

Encourage agro-processors to consider viability of backward integration with farmers and farmers to forward integrate with agro-processors on shared equity models

DEXIA Trade Assns

Purchase of a Gascomatograph and Refractometer and other agro-processing equipment

MOAGRI DCAB, DEXIA 50,000,000

Increase in productivity in the sector

30% of enterprises in the sector reporting productivity increases by Y3

Creation of clusters and business mentorship by successful agro-processors

Trade Assns DEXIA, MOT Y1

Assess viability of joint venture and foreign investment programmes into the sector.

Create new credit facilities targeting the sector

IDA NBD, AID Bank, Credit Unions

Trade Assns, MOT, MOFORA

Y1

Ongoing monitoring of business productivity DEXIA Trade Assns Y1

Develop regional value chain concept and explore possible franchising opportunities

Trade Assns DEXIA Y2

Capacity Diversification: To diversify the export base into new, high value

Actual number of new high value products being exported

Retail packaged products accounting for 20% of increase in exports of agro-

Plan a promotion campaign to attract direct investment into the sector for financing technology improvement

DCAB MOT, MOAGRI, DEXIA, IDA

2nd

Qtr 50,000

80



product lines especially coconut (coconut furniture) and seasoning pepper and banana (banana paper, banana rope) and ground coffee

processed goods by Y4: - Compost from

spent leaves from bay oil processing

- Household disinfectants, insecticides

- Creation of a uniquely Dominican cuisine (tourism product)

A programme to provide focused market information and advisory services to enterprises

DEXIA DCAB, MOT, MOFORA

Y1 DEXIA

Appoint a committee to work on creating the cuisine

DCAB DDA,IICA, CARDI

Y2 50,000

Actual number of new investments in R&D in the sector

Evidence of new initiatives in R&D in the sector at an enterprise level – at least 5 enterprises – and at a national level by the Ministry of Agriculture by Y3

Encourage and support product research and development at the cluster level.

DEXIA DCAB, UWI, CARDI, IICA, MOEDU, MOAGRI

Y2 TA

Engage regional and international research organizations e.g. UWI to support product development research for the sector

TA

Secure technical assistance for at least 5 enterprises including one potential exporter

TA

Initiate a programme of sponsorship of study tours for targeted exporters to research facilities in the region and internationally

100,000

Human Capital Development: To raise the skills base within the sector and to promote entrepreneurship

Increase in number of training programmes in management competencies and entrepreneurship targeting the youth.

To be reflected in new school curricula, specifically - Introduction of training in professional business skills and entrepreneurship at all of the tertiary

Encourage continued strengthening of vocational training curriculum at the DSC.

Encourage private training institutions to introduce more vocational training courses and courses in entrepreneurship.

Broadening and extending of the internship/ apprenticeship programme for the graduating classes of the DSC to private training institutions and the secondary schools

MOEDU, DSC

Private Tertiary Training Institutions, Primary, Secondary Schools & Private Sector including UWI MOT, DEXIA

Ongoing

81



level institutions

Support ongoing training programmes in business management competencies at the DSC

MOEDU DSC Y2

Expand business incubator services to facilitate young entrepreneurs

DEXIA MOT Y2 1,000,000

Actual number of tertiary level trained graduates – vocational institutes, technical colleges and universities –entering the sector

Using baseline as Y2, 30% increase in Y3.

Encourage private training institutions to offer more vocational training courses and courses in entrepreneurship

MOEDU DSC, Private Tertiary Training Institutions, UWI

1st Qtr

Increase sponsorship for participants in entrepreneurship training and other management competencies training programmes

MOT DEXIA, Trade Assns

Y2 100,000

Actual number of exporting agro-processors participating in vocational training programmes

At least 5 every year after the first year

Introduction of a scholarship programme for unqualified middle management staff of targeted agro-processing enterprises

MOEDU, UWI

MOT, MOFIN, NAO

Y2 1.500,000

82



Infrastructure To ensure that the physical infrastructure in the country is conducive to sustained improvement in the sector‟s export performance.

Improvements in air and sea ports

Cross border freight transportation bottlenecks to be overcome by Y4.

Negotiate for more efficient air and sea freight services

MOPOR Private Shipping Lines, Shipping & Travel Agents, MOFIN, MOT, DEXIA

2nd

Qtr ??

Continued improvement in port facilities

Ongoing

A focused investment promotion plan to seek funding for construction of an international airport

IDA DEXIA, MOPOR

Ongoing Ongoing

Reduction in cargo handling time at the ports from 3 days to 1 day

Explore possibility of cargo consolidation and use of cruise ships

DASPA Shipping Agents 2nd

Qtr

Ensure completion of the ongoing Port improvement plan within schedule

MOPOR Y1

Increased efficiency of electricity and telecommunication, in particular internet services.

80% reduction in unscheduled power interruptions by end of Y1

Expedite urgent development of geothermal potential through focused promotion programmes to attract capital for development of the sector and granting of tax credits for investments in the sector.

IDA MOENRG Y1

80% reduction in unscheduled interruptions in internet services within 1 year

Continued investment by DOMLEC and LIME in modernizing plant and equipment.

MOENRG, MOTELE

ECTEL Ongoing

Ongoing engagement of NTRC to ensure its effectiveness

MOTELE Ongoing

Trade Facilitation To minimize

Simplified customs procedure, reduction of time

Complete Customs Modernization project on schedule, and launch

Ensure continued priority implementation of customs modernization project.

Customs DCAB, MOFIN, DBOS

Ongoing

83



regulatory and procedural requirements within the sector

required to clear imports from 3 days to 1 day (including as inputs in export activities).

ASYCUDA World. Undertake training and sensitization of exporters and customs brokers in new procedures

Customs Dept

DEXIA Y1

Lower port charges on exports

Average level of charges on exports reduced to average level of charges on imports by Y2

Undertake a review of charges for port services

Put in place a system which does not delay cargo handling at the port unduly, in favour of cruise-ships

MOPOR, DASPA

MOTOUR, MOFIN, MOT, MOAGRI

3rd

Qtr

Expanded port facilities MOPOR MOFIN

Lower cost of internet access

Rates comparable to lowest rate in the OECS

Encourage continued liberalization and promotion of competition among internet service providers

MOT LIME, SAT, MAPIN, MOTELE

Immediately

Strategic Consideration No 4: The Border Out Gear- Improving Market Access and Exploring Commercial Opportunities


Market Access: To secure best possible access for Dominica‟s exports in targeted regional and international markets

Actual benefits from FTAs entered into – EU EPA, CSME, ALBA.

50% increase in exports to the CARIFORUM , US, Latin America, UK, Germany, and 1new market (mainland France) penetration in the EU by Y4

Draw up a profile of 10 targeted businesses to inform design of a focused sensitization plan on consumer preferences in the CSME, the UK, US, Germany, France and Latin America

Link targeted enterprises with major agro processors in the target markets with a view to developing partnerships in those markets

DEXIA MOT, OECS, CARICOM, CARIFORUM, Caribbean Exports

Y2

In-market Business Support To provide the sector‟s exporters with a full-service

Increase in support and advisory services provided and investor contacts made by

Establishment of at least 3 credible business relationships as a result of support and advisory services provided by

Staff and equip embassies and other offices abroad to provide market support services to existing and potential exporters – US, UK France, Venezuela

MOFORA MOFIN, MOT Y1 500,000

84



advisory and support programme in principal markets

embassies and consulates overseas

embassies.

Promotion To establish a positive image both border-out and border-in to reinforce the sector‟s competitiveness and export effort

Number of missions to promote the sector

2 in-market trade shows- Interbev. and American Food and Beverage Show, and 2 inward buying missions (IBMs) annually, after one year.

Plan and coordinate in market promotion activities for the sector.

IDA Trade Assns, DEXIA, MOFORA, MOFIN, MOT

Y2

Number of enterprises participating in promotion missions

Participation by all targeted existing exporters, at least two potential exporters and one aspiring exporter by Y4.

Engage agro-processors to participate in in-market promotion missions and trade shows by providing assistance with sourcing and transporting materials.

Introduce a data recording system on participation in promotions, trade shows etc by enterprises

DEXIA Trade Assns, MOT, IDA

Y 1 100,000

New business successfully negotiated

5 new business contracts negotiated each year

Establish a subcommittee within the NEC to plan and coordinate in market promotion activities for the sector.

Initiatives to more aggressively engage agro-processors to undertake/participate in in-market promotion missions, trade shows, by providing assistance with sourcing and transporting materials.

Business Enterprises

Trade Assns, NEC, IDA, MOT

After Y1

85



To have exporters who fully understand export procedures and meet market requirements

Ability to complete customs forms on their own

Absence of errors on forms completed

Intensify and expand business counselling programmes

Customs Dept.

DEXIA 1st Qtr MP

Number of existing and potential exporters trained

Number of complaints from target markets

20 by Y1 and 10 annually thereafter of existing and potential exporters trained

75% reduction in complaints after 2 years

Sensitize the OECS/EDU to support introduction of export management programmes.

MOT DEXIA Y1 MP



To ensure that coordinated and comprehensive trade information services are available to sector enterprises and decision makers

Increase in information types disseminated and made available to the sector

Availability of detailed market information for the sector after Y1

Dissemination of information on at least 2 credible business opportunities every quarter from Y2

Establish a central trade information unit at DEXIA

MOT CSO, DCAB

1st Qtr

Compilation of a comprehensive data base on existing exporters within 6 months

Establish a data collection system on each enterprise in the sector

Establish a unit with an information usage system to monitor developments and challenges within the NEC Secretariat and prepare reports for dissemination

DEXIA DCAB Member Assns, CSO

2nd Qtr

Number of recipients of information

All potential exporters should have obtained data from the central export information unit

Provide adequate software and hardware to the central trade information unit

DEXIA MOT 1st Qtr

Embark on a campaign to ensure ICT competency among businesses in the sector

DCAB DEXIA, MOTELE

Y1

Digital dissemination of market information to existing and potential exporters in the sector

Sensitize enterprises and other stakeholders to the importance of using market data in production planning.

DEXIA MOT 2nd

Qtr

86



Current Exporters To ensure that businesses in the sector have access to concessionary credit and export credit guarantee schemes

The cost of finance available to current, potential and aspiring exporters

Lower interest rate (max. 6%) on credit available to the sector after 6 months

Introduce new low cost lending funds targeting the sector

AID Bank, NDFD, Credit Unions, NBD, Private Consultant

MOFIN, MOT, DEXIA

Y1 5,000,000

Train staff of financial institutions to encourage adaptation of their risk management regimes through stronger partnership with customers in the sector

30,000

Innovative collateral requirements by all financial institutions

Seek grant funding to introduce new revolving microfinance and seed capital programmes targeting the sector (DYBT model)

MOAGRI, MOT

MOFIN Y 3

Enhanced export credit insurance facilities

Annual increase in number of companies accessing the ECCB export insurance scheme after Y1

Review of the ECCB export credit guarantee scheme

Embark on an awareness programme on the scheme

ECCB MOFIN, MOT, DEXIA

Y 2

60% utilization of funds being made available within 2 years

80% of recipients under new credit facilities servicing their debt.

Introduction of a client debt servicing and monitoring system based on periodic reports compiled by lending institutions and submitted to DEXIA

Financial Institutions

DCAB, CSO, DEXIA

4th

Qtr

87

Strategic Consideration No 9: Trade Support Services: Quality


To ensure that all agro processing entities have an internationally recognized food safety control and quality management system

Documented quality management system and record of implementation in place by Y2

Conformity of national standards to international standards

Introduction and enforcement of a system to record farm practices

50% of agro-processing entities have a quality management system in place by Y3

To have a cadre of certified HACCP and ISO quality management auditors

ISO 17025

ISO 151809

An aggressive campaign to sensitise and educate all small businesses on the impact of meeting quality and safety requirements on viability of their business

Conduct a system audit of companies

Develop protocols based on Standard Operating Procedures and train staff at the entities to assist with implementation of the quality and safety programmes

Competency building training programmes for staff of the DBOS and relevant staff of the Ministry of Agriculture

Current model recommended by DBOS to put systems in place even if certification is not sought should be adopted.

DBOS DEXIA, Trade Assns in the sector

Immediately 500,000 (Chinese) Undertake a study to ascertain which

target markets require what certification, before investing resources in seeking certification

Early commissioning of the NCTE

Initiatives by the Min of Agric to strengthen capacity for plant and animal laboratory testing as a matter of urgency

MOAGRI DBOS Y1

International accreditation of local certification bodes

Establishment of a national accreditation body by Y3.

A study to determine areas of accreditation critical to target sectors.

Campaign to expedite completion of accreditation of certification bodies through financial support for adequate staffing and adequate laboratory facilities and for technical assistance

DBOS DEXIA, MOT, MOAGRI, NAO, CROSQ

Immediately

To have certified companies operating in the sector

Number of current exporters which meet standards required by their target markets

75% by Y2 Expansion of information, advisory and training services provided by the DBOS and other SQAM service providers, OECS EDU, Produce Chemist Laboratory, CROSQ, Caribbean Export

DBOS DEXIA Immediately

88



Level of occupational safety and health standards (OSHA)

Standards to be in place by end of Y1

Undertake an OSHA

Engagement of a consultant to work with companies to implement recommendations

MOHEAL MOAGRI, PAHO, FAO

Immediately 100,000

To Develop a national quality brand – the Dominica Standards Mark.

National brand Launch of national brand by end of Y2

Engagement of a consultant to develop and design the brand

DBOS DEXIA 2nd

Qtr 100,000

Build and support institutional capacity of the DBOS to effectively carry out its mandate

MOT MOFIN Y1

To increase value retention and value addition and generally improving labelling and packaging standards within the sector through application of modern technology

Increased used of locally designed packaging material

20% increase in use of locally designed packaging for bulk and retail exports by Y3

Training and competitions to encourage quality design making

DBOS

Trade Assns, DEXIA

Y1

Partnering with foreign investors – one regional, one international, through undertaking one mission to each target market to expose 10 targeted producers including 3 potential exporters and one aspiring exporter

Explore private labelling possibilities

Trade Assns DEXIA

89

Strategic Consideration No 11: Strategy Support Network – Leadership, Coordination and Structure


To ensure competitiveness of the sector and implementation of its export development thrust through coordinated policy initiative and implementation within the strategy support network (TSN).

The extent of policy coordination among all sectors of the strategy support network:

- Ministry of Agriculture - Ministry of Trade - Ministry of Finance - Ministry of Foreign Affairs - Ministry of Ports - IDA - DEXIA - DAIC

Engagement of Trade Associations within the sector by the TSN, and representation of DCAB on the NEC

Urgent appointment of the NEC with representation from the DCAB

MOT MOFIN Immediately

Extent to which resource requests are included in approved annual budgetary allocation

SDN members are resourced to carry out their mandate in implementation of the NES

Inclusion of all annual financial requests in annual budgets of respective SDN members

Respective SDN members

DEXIA Immediately

Strategic Consideration No 12:Services Delivery Network (SDN)– Quality and Capacity, Cost, Synergy and Coordination


To ensure that the services delivery institutions have the necessary resources to provide the services required of them

Level of competence and service delivery by members of the SDN:

- DCAB - DHA - IDA - DBOS - DHBA - AID Bank, NBD, Credit Unions - DEF - Trade Unions

Regular meetings of SDN members

Increased participation by members in activities of DCAB. DCAB draw up a plan and mobilize resources for its financing to better serve its members.

DCAB DCAB Member Assns

2nd

Qtr

Rating by clients, of services delivery performance of DCAB and its members

Annual increase in satisfaction rating

Ongoing survey among members of the Associations

DEXIA DEXIA Immediately

90

9.3 Sector Strategy: Cultural Industries

9.3.1: Introduction

The cultural industries sector in Dominica includes song writing, live performance and recording of music, local production of audiovisual products and location filming by foreign producers, arts and crafts, and production of printed material. To date growth in the sector has been driven largely by the need to provide entertainment in the local market while insufficient investment has retarded the sector‟s growth. Official employment statistics are unavailable but it is estimated that this sector provides employment for several Dominicans particularly in the music industry. This strategy focuses on the music and audiovisual industries whose respective development appears to have a symbiotic relationship.

9.3.2: Vision

To develop the cultural industries to become a significant source of employment and contributor to export earnings through the GATS 4 modes of supply

91



Existence of indigenous people

Dominica‟s natural and un-spoilt beauty

Reputation as a leading eco tourism destination in the region

French influenced Creole culture and music

Proximity to markets of Martinique and Guadeloupe (EU)

Popularity of WCMF outside Dominica (linkage with tourism sector)

Within CARICOM Dominica has the highest ratio of consumption of local to foreign music and also production and variety of music

Recent formation of Eastern Caribbean Collective Organization (ECCO) for Music Rights will allow producers in the sector to collect royalties accruing to them from any part of the world.

Highly literate labour force

Weaknesses

Insufficient number of persons with the requisite management, IP and e-commerce competencies within the sector (Border In – HCD)

Poor enforcement of provisions of the Copyright and Related Rights Act No.5 of 2003 (Border – Trade Facilitation)

Very limited awareness of the provisions of the Copyright and Related Rights Act No.5 of 2003 and its regulations within the Strategy Support Network (Border – Trade Facilitation)

The absence of a sensitization programme nationally on the provisions of all IP legislation and their implications (Border)

Relatively high customs duties and other charges on cultural industries related imports (Border – Cost of Doing Business)

Lack of Double Taxation Treaties with key export markets currently (Border – Trade Facilitation)

High incidence of piracy (Border – Trade Facilitation)

High cost and unreliable cross-border transportation (Border – Cost of Doing Business)

High electricity and internet costs (Border – Cost Of Doing Business)

Lack of coordinated national promotion initiatives for the sector (Border Out)

Lack of transparency in applying entry provisions to performers within the CSME (Border Out)

Need for more focused information dissemination on market openings and consumer preferences e.g. standards, in the EU and CSME (Border Out –Market Access)

The sector‟s inability to attract the requisite level of capital investment as most potential investors and musicians in Dominica do not adequately understand how the international music industry operates (Client – Trade Finance).

Lack of national standards for the sector and lack of a national brand (Client – Quality)

Inadequate coordination among stakeholders in the sector in events planning (Institutional – Leadership)

92

Opportunities

Market opportunities in France, French West Indies, CSME and rest of the Caribbean, Germany, UK, and US.

France has a very high level of appreciation for culture, is very open to culture from outside, and has a large African and Afro-Caribbean population. Collective Management Organization (SACEM) in France charges the highest fees for use of music in different forms and also France has a high IP compliance culture. Furthermore, proximity to the French West Indies is a gateway to the mainland market in France.

In the case of France, the French West Indies, UK and Germany existing strong demand for Dominica‟s music can now be better met under provisions of the EU CARIFORUM EPA which allows contractual service suppliers (CSS) even without professional qualifications and a University degree to enter the EU to supply services for up to six months with no restrictions on numbers.

Provisions in the EPA for dialogue on issues related to regulation of e-commerce including recognition of electronic signature and the protection of consumers in e-commerce offer tremendous potential for sale of Dominica‟s music and AV productions in the EU market.

In the case of the US the possibility of inclusion of services in the successor FTA to

The CBI offers market growth potential for Dominica‟s cultural industry particularly music.

In all of these identified markets except France and Germany the presence of strong Diaspora communities offers great promise.

Increasing awareness within the Strategy Support Network of the employment creation and poverty alleviation potential of the cultural industries.

Within the other Caribbean islands respectively there is high demand for music from other islands

Possibilities to increase sales and performances through strengthened linkages with the tourism sector

Threats

Slowness in addressing weaknesses in the sector can result in loss of emerging market opportunities especially in the EU and the CSME

Global economic slowdown and possible reduction in demand for leisure products and services.

As a result of EU EPA, Dominica no longer has an apparent monopoly within the CSME, of cultural exports to the French West Indies.

93

b. Strategic Options The strategy seeks to transform Dominica‟s cultural industries sector into an export growth sector by focusing on the strengths and opportunities outlined and allow market opportunities in the EU, in the CSME and in the US to be exploited by aggressive promotion of Dominica‟s French Creole and indigenous culture. Priority initiatives to stimulate the priority subsectors – music and audiovisual industries- are a campaign to increase Intellectual Property (IP) awareness and enforcement to: attract capital investment to the sector, promote knowledge of consumer preferences in target markets, and an education programme to increase management competencies and skills requirements in the sector. The strategy also seeks to strengthen linkages between the music industry and the film industry and with the tourism sector.

c. Growth trends Official statistics on overall growth performances in the sector are not now available, however for the music industry there is evidence of increasing production in recent times. This trend is expected to continue as Dominica‟s tourism product increasingly emphasizes festivals like carnival, WCMF and village feasts, which are largely music–based products.

d. Market environment and how they can be met Cultural industries contribute significantly to the global economy. In the Caribbean region, the sector accounted for roughly 5% of GDP, and several recent studies have indicated the cultural industries to be an area in which the CARICOM region has a competitive advantage. With respect to music, market research indicates:

Trend towards increasing market demand for audiovisual presentation of music, that is, music videos. (This offers tremendous potential for development of the local film industry and the arts and craft industry)

Danceability is a significant consumer preference in the French Islands and the Caribbean

Because of its Creole French influence, Dominica‟s music has been observed to appeal to niches in the French market.

94

Product development to meet consumer preferences in the French market, to address music presentation using AV, packaging and branding can therefore result in strong growth in exports of Dominica‟s music (both live performances and recorded products). The following matrix presents the market/product development options to be pursued:

Existing Products Further Market Penetration New Market Development

CD

Live Performances

AV

France, Fr. West Indies, US, UK, Germany, Dominica and other Caribbean

Fr West indies, UK, US, Caribbean

French West Indies, Trinidad, St. Lucia, Jamaica, Barbados

Mauritius, Reunion Island, Cape Verde, Seychelles, Madagascar - (Creole)

Mauritius, Reunion Island, Cape Verde, Seychelles, Madagascar - (Creole)

Mauritius, Reunion Island, Cape Verde, Seychelles, Madagascar - (Creole), US, Germany, France,

New Products Product Development Markets

Downloads

Filmed concerts which can be sold as DVDs

Other recorded products- flash drives

Need to have video material on all video websites - YouTube, daily motion (French) , meta café, Facebook, MySpace

Global

Organising to have all rights cleared by performers and composers to allow filming of WCMF and other festivals and concerts in Dominica

Need for an advertising and promotion campaign

In target markets

95


Current Value Chain - Music NB: In general the cost of recording and marketing are borne by the performer who is often also the songwriter

Blue Lines indicate flow of Royalties

Photography & Graphic

Art

Recordings by

Performers

Publicity by Radio,

TV, & Posters

Recording

Studio

Songwriter/

Composer

Local performances use: Venues; Promoters;

Technical Personnel

Local Retail

Market

Local Live

Performances

Inputs Manufacture

Phonograms Foreign Market

Physical Product

Foreign

Performances Live

& Recorded

Imports of Tools of the

Trade: Instruments;

Sound & Light by

Performers & Venue

Owners

Public Performance

Royalties via

Foreign CMO

Publicity by Radio,

TV, & Posters

96

Value Options

Improve Efficiency

Social commentary with a narrow national bias can be addressed by training of composers to prepare calypsos not only to win national competitions but with regional and international markets in mind

More national policy support to nurture the development of the music industry

Interventions to encourage emergence of businesses to provide many of the services now undertaken inefficiently by the artists viz. legal services, management, promotion and marketing, investment and production

Need to have independent/public sector agency/desk to lead the advocacy in this regard to avoid the issue of conflict of interest by private sector operators now undertaking this activity to a limited extent

Product development targeting tourism sector especially hotels. Would also benefit from expansion of the hotel sector

Specific objective of the World Creole Music Festival (WCMF) should be to showcase local artists to international festival organizers

Minimise Leakages

Need for training to encourage more writing and use of local songs with international appeal by local performers

Government trade policy to require minimum local content on cable television

Encourage government to sign UNESCO Treaty on Cultural Diversity

Training of local sound and light engineers to provide services for festivals and shows

Possibility of local production of ringtones with high content of local music/tones

Add Value

Selection of artist to reinforce the brand of WCMF

Promotion of the festival in all Creole speaking countries of the world as a brand

Scope to use mode 4 to export festivals to French/Creole speaking countries of the world

Linkage with other activities such as Creole in the Park, Creole in the North, and other festivals during that 2-week period.

Develop a fashion line for artists

Increase IP awareness and compliance and develop GI for Carib Crafts

Create Value

Enhancement of training and marketing skills

Incentive to encourage investment in the sector

Selling of services to hotels and other establishments in the tourism business

Use of local talent (music) by local advertising firms who do work for local and foreign firms

Use of local music in audiovisual production by local and foreign firms particularly those shot in Dominica (linkage with film industry)

9.3.5: Mapping the Future Value Chains

NB: In the future value chain the revenue flows will come from Copyright and Related rights royalties and progressively less from phonograms. The role of Music publisher will be key to generating copyright royalties. Objective is to minimize use of foreign content, maximize local and foreign use of local content in order to have a favourable balance of musical trade. Local Telecommunication companies are very important in the distribution of content on the Internet.

Legend: Blue Lines indicate flow of Copyright Royalties; YYeellllooww LLiinneess indicate the flow of Right to Equitable Remuneration; Orange Lines indicate Payment Flows for Recorded Product

97

Future Value Chain Music

LEGAL

SERVICES: Artist

Management

Photography

& Graphic

Art

Recordings by

Performers

Publicity by Radio, TV, Posters, &

Videos

Record

Producer

Songwriter/

Composer

Performances use: Venues; Promoters;

Technical Personnel

Local Retail

Market

Local Live &

Recorded Performances,

including on TV &

Radio

Inputs Manufacture

Phonograms Foreign Market

Physical Product

Foreign

Performances Live

& Recorded

Imports of Tools of the

Trade: Instruments; Sound & Light by

Performers & Venue

Owners

Public Performance &

Reproduction Royalties

& Rights to Equitable

Remuneration via

Foreign CMO

Publicity by Radio,

TV, Posters, &

Videos

Recording

Studio

Music

Publisher

Internet Use:

downloads,

streaming website

enhancement (see

internet value chain)

Synchronization & Other

Reproduction Rights

Foreign

Distributor

Foreign Rights

Holders

Public Performance &

Reproduction Royalties & Rights to Equitable

Remuneration via Local

CMO

Synchronization & Other

Reproduction Rights

98

Music on the Internet

RELIABLE LOCAL MOBILE &

FIXED INTERNET SERVICE

Publicity Material,

including AV

Products

Performers & Record Producers produce

recordings

SOCIAL

NETWORKING

SITES: MySpace,

YouTube, etc

CONTENT

AGGREGATORS: Full Songs, Ringtones,

& AV Products

ONLINE

RETAILERS:

iTunes, Amazon, etc

Foreign Record

Producers

Right of Communication to the

public; Right of Reproduction,

& Right to Equitable

Remuneration via Local CMO

Right of Communication to the

public; Right of Reproduction, &

Right to Equitable Remuneration

via Foreign CMO

CONSUMERS

99



Employment Generation To increase the contribution of the cultural industries to employment creation across Dominica

Increase in number of individuals/ groups employed in production of cultural services

1. Employment of an additional 2,000 new individuals in music and local film production after Y4

Campaign to sensitize the public including policy makers of export potential of the cultural industries, generally

Outreach programme to develop potential and aspiring exporters of music and arts and crafts in rural areas to perform at hotels and at major festivals

Private service providers/ and Trade Assns

Cultural Div, MOT

Immediately

3,000

Poverty Reduction To increase the contribution of the cultural industries to economic activity in rural areas

Increased incomes to people in the sector after 2 years

Increased showcasing of the indigenous culture

A 20% increase above the poverty income threshold

Surveys to obtain data on poverty indicators on an ongoing basis

CSO DEXIA, Trade Assns in the sector

Y2

Campaign to ensure that skills training programmes target potential and aspiring exporters in rural areas.

Trade Assns in the sector

MOEDU

Establish a Geographical Indicator (GI) for Carib crafts

Local IP Office Carib Council, DBOS, MOLEGA

Environmental Sustainability To ensure sustainable use of raw material inputs into the craft industry

Continued dominance of cottage industry in the arts and craft sector

Maintain 100% hand production

A programme to work closely with producers of arts and crafts in the Carib Territory to maintain minimum standards

DBOS MOCARIB, Carib Council

2nd

Qtr

100



To develop supply side capacity within the sector: Development of music genres

Increased appeal and marketability of Dominica‟s music in French territories, UK, France and the Caribbean based on specific consumer preferences i.e. Danceability in French islands and other Caribbean markets, AV in France, Germany and the US Increased use of local music/videos by MARPIN 2K4 and LIME

30% increased sales of Dominica‟s Creole music in the Martinique and Guadeloupe and in the CSME. 50% increase within 1 year

A campaign to sensitize and train musicians on the specific preferences of consumers of Dominican music in French markets, UK, Germany and in the CSME and USA


Cultural Div., DEXIA

3rd

Qtr 20,000

Ensure that Government of Dominica signs the UNESCO Treaty on Diversity of Cultural Expressions

MOTELE Collective Management Organisations (CMO)

2nd

Qtr

Introduce a minimum quota for cable operators with respect to locally produced AV material

MOTELE


2nd

Qtr

Address current practice of cable operators charging local producers rather than the reverse for use of their work by implementing the cultural policy and putting in place a Broadcast Act.

MOTELE MOCUL (Cultural Division), MOT

2nd

Qtr

Better R&D to align cultural offerings to international tastes and trends

Tailored surveys of tourists, visitors and hospitality establishments

Tourism survey extended and administered by Y1

Questionnaire designed and included in tourism survey

DDA CSO Y2

50% of hospitality establishments surveyed by Y1 and balance by end Y2

Questionnaire designed and circulated to the hospitality industry

DDA DHTA Y2

101



To raise the skills base within the sector and to promote entrepreneurship (HCD)

Training in management competencies to include ICTs, entrepreneurship, negotiating, marketing and financial management

At least 3 sensitisation campaigns and three training workshops within one year

Set up a planning committee to undertake a focused sensitization campaign to target musicians, sound engineers, camerapersons, on importance of being trained in management competencies, followed by planning of workshops in time management, record keeping and financial management targeting the same groups

Trade Assns, DSC, Private consulting firms

Cultural Div Immediately 5,000

Music and performing arts appreciation classes in all primary and secondary schools by Y2

Curriculum development to introduce training programmes in AV production skills/ performing arts on a more sustained basis

MOEDU Cultural Div Ongoing

50,000

Campaign to support the introduction and strengthening of training programmes in music writing and production, arts, crafts and entrepreneurship throughout the school system

Trade Assns Cultural Div, MOEDU

Ongoing

Continue to introduce music and performing arts in the primary and secondary school curriculum

MOEDU Cultural Div

Y2

At least 5 persons trained in managing cultural enterprises by Y4

Conduct targeted training programmes in management and marketing for exporters in the sector

Cultural Division, MOEDU

DEXIA, DSC, MOCDEV

Immediately 150,000

Introduce and sponsor a scholarship programme to support exporters in the cultural industries in accessing the “Management of Cultural Industries Course” offered by UWI St Augustine

Y2

102



Additional training for producers and service providers in the sector specifically: - Persons

involved in legal aspects, administration and production

Training programme designed for each component and functioning in Y1 e.g. contract negotiation, stage management, lighting, sound engineers, training of trainers.

Strengthen the National Cultural Council (NCC) to more effectively coordinate and deliver capacity building events for operators in the sector

MOCDEV Trade Assns in the sector, UNESCO, WIPO, La Francophone

2nd

Qtr 250,000

Collaborate with WIPO, UNESCO, La Francophone to get specialists to come to Dominica to provide the training, or to facilitate study attachments

IP Office Trade Assns in the sector

A campaign to strengthen the music and arts components of the primary and secondary school curricula

Entire school system and MOEDU

Cultural Div Y2 20,000 Start an annual Awards Event to

increase recognition of musicians

Trade Assns Media houses, MOCDEV, MOEDU, DEXIA, Corporate Sponsors

Y1



Infrastructure: To ensure that the physical infrastructure in the country is conducive to sustained improvement in the sector‟s export performance

Level of, reliability and cost of electricity and telecommunications

90% reduction in unplanned electricity outages after 1 year

Upgrade of telecommunication (internet) system to third generation (3G)standard (with broader band width) after 2 years

Initiate a programme to engage the Independent Regulatory Commission (IRC) to be more effective in its rate review and regulating role and to sensitise DOMLEC to the urgent need to upgrade its plant and equipment

DEXIA MOENRG 4th Qtr

103



To improve ease and cost of cross border transportation

Number of hours spent in-transit at ports

50% reduction by Y2 Continue port improvement projects to attract more traffic to Dominica and continued negotiations with airlines

MOPOR/ DASPA

MOFIN Immediately

Reductions in passenger and freight transportation costs

At least 20% reduction by Y3

Intensify campaigns to attract investments in efficient sea transportation links specifically a ferry service between Dominica and Martinique and Guadeloupe

IDA

MOFIN, MOPOR

Y1

To minimize Intellectual Property (IP) infringements

Level of IP awareness and enforcement

Public sector leading by example: 50% of public sector heads of department having participated in an IP awareness programme by Y1

The WIPO awareness programme targeting public sector to be undertaken

MOLEGA Cultural Div, Trade Assns in the sector, WIPO

Immediately Funded by WIPO

A media campaign targeting general population starting by Y1

Commence consultation with newspaper editors, television and radio stations

IP Office Y1

Reduction in incidence of piracy both copying CD ROM/ drives and internet

Decrease in number of illegal internet downloads, and blank CD imports

Decrease in number of blank media downloaded by 60% by Y2

Engage all internet service providers to agree on an approach to address the problem

Trade Assns MOT, MOTELE, Cultural Div (Can be funded by WIPO as an OECS project) MONATS, MOLEGA

4th Qtr

30,000

Undertake a cost/benefit analysis of levies on copy devices (CD ROMS/drives)

3rd

Qtr 25,000

Train a police officer to be assigned responsibility for anti-piracy and counterfeit investigations.

Police Commissioner

Y2 10,000

Trade Facilitation: To minimize regulatory and

Modernization and simplification of customs procedures by Y1

ASYCUDA World Launched in June 2010

Ongoing customs modernisation project to be completed on schedule June 2010

Customs Dept MOFIN Ongoing World bank funded

104



procedural requirements placed on the sector Cost of Doing Business: To minimize indirect costs of exporting

Rate of import duty on copy devices produced outside of Dominica by Dominican artists and producers (35%, VAT 15%) CSC, EL, relatively high compared to the rates on blank CDs

To be reduced to an average of 15% within one fiscal year

A streamlined mechanism to apply duty waiver or duty drawback or bonded warehouse system for imports of copy devices and production equipment for materials to be exported.

MOFIN Trade Assns, DEXIA

Y3

Taxation on royalties

Discontinuation of double (triple) taxation on income earned by Dominican musicians performing in countries where no DTTs have been entered into.

Enter into negotiations to have Double Taxation Treaties (DTT) with Governments in target markets.

MOLEGA Trade Assns in the sector, MOFORA, MOT

Y2

Energy costs and resulting high cost of production

Reversal in increasing trend in electricity rates

Ensure that DOMLEC undertakes timely investment in upgrading its plant and distribution technology and developing its human resource

IRC, MOENRG

Trade Assns, DEXIA

Ongoing

105



In-Market Business Support: To provide exporters in the sector with in- market support programmes in target markets

Number of Dominican performers facilitated by Dominican Embassies, Consulates, and the Diaspora in target markets

At least 10 groups within 1 year

Disseminate to DEXIA and other stakeholders information on market opportunities

MOFORA/ Embassies Consulates

Diaspora Orgs

2nd

Qtr See global

Participation by producers/performers in the sector in industry trade shows, symposia, and festivals

At least 10 annually

Finance participation in industry trade shows and promotion events

MOFIN (through donors)

MOFORA, MOT

Y2 1,000,000

Promotion: To enhance the presence and appreciation of Dominica‟s culture in target markets

Number of national promotion missions which cover cultural industries

3 new annual promotions

Set up a Music and Film Development Advisory Council serviced by a full time administrative officer to coordinate planning of a promotion campaign

Trade Assns

IDA, MOT, DEXIA

2nd

Qtr

36,000

Planning committee will target Fr. W Indies, France, UK, Germany, US. The promotion plan will be informed by specific consumer preferences in the respective target markets, will tap on the knowledge of the Dominican Diaspora, and also the Embassies/ Consulates where they exist

Planning committee

IDA, Cultural Div, DDA, MOFORA, MOFIN



To ensure that exporters in the cultural industries have the competencies to achieve sustained market access

Improved foreign language skills of performers, managers, producers

At least 100 stakeholders completing training courses in speaking Spanish, German and French by Y4

Sensitize stakeholders to participate in the foreign language course being offered

Trade Assns

MOFORA, Private Consultants, MOEDU

Y1 60,000

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Strategic Consideration No 6 : Trade Support Services: Trade Information


To ensure that coordinated and comprehensive trade information services are available to sector enterprises and decision-makers:

- Entry requirements - Information on other concerts

and festivals that take place in the region and internationally

- Profile of associations which exist in target markets

- List of main producers in target markets

- Listing of clubs and media outlets

- What kind of revenue streams exist in target markets

Tailored information services focusing on French West Indies, UK, France, USA the CSME, and the Diaspora

Monthly E-newsletter circulating by end of Y1.

Dedicated website service up by Y1

Establish a team to agree on contents and modus operandi for producing the e-newsletter and designing the website

Country studies completed and disseminated for comment by end of Y1


DEXIA, CSO

2nd

Qtr (Trade Information Officer at DEXIA)

Actual number of referrals and contracts signed due to information exchange

Identification and dissemination of information on at least 5 market opportunities every quarter

Establish contacts in each targeted market to obtain information on opportunities and requirements of each market

Compile success stories in the sector for dissemination among target groups


DEXIA By end of Y1

Strategic Consideration No 7 : Trade Support Services: Trade Finance


To ensure that musicians and other producers in the sector have access to export credit on concessionary terms

The amount of concessionary credit available to current, aspiring and potential exporters and other participants in the value chain

One new special credit facility targeting the sector

100% increase in loan applications by exporters in the sector with an 80% success rate

Training in preparation and use of business plans

Campaign to sensitize potential and aspiring exporters to the benefits of exporting

DEXIA MOT, The Business Gateway, private consulting firms, DYBT, Youth Div

Immediately 50,000

A task force to work with financial institutions towards creation of new credit and investment financing windows

MOT MOFIN, DEXIA, Donor Community

Within 1 year

Revisit enforcement of provisions of the National Lottery Act which require the National Lottery Commission to sponsor cultural groups

MOFIN DEXIA Y1

107

Strategic Consideration No 7 : Trade Support Services: Trade Finance


Introduce a levy on monthly cable bills proceeds from which will be earmarked to financing cultural groups

Funds collected from Lottery Commission and Cable Levy to be placed in a guarantee fund for collateral to a commercial bank to advance loans to the sector

Tax credits to companies making donations to arts and cultural events and projects

MOFIN DEXIA, Trade Assns Y2

Performance of recipients of concessionary credit

0% delinquency in servicing loans

Introduce a system of data collection from financial institutions to provide DEXIA with information on trends in delinquency rate for the sector

Financial Institutions, Private Consultants

DEXIA, CSO

Hold consultations with financial institutions on risk management policies

MOFIN Trade Assns in the sector



To ensure that exporters of music and related cultural services are fully compliant with standards in the international market place.

Level of compliance with international market standards

That ECCO meets standards of (CISAC) International Confederation of Societies of Authors and Composers- expenses should not be more than 30% of total collections.

Support for use of modern technology in collecting, analyzing and compiling data

ECCO MOT, CISAC Members, Business Gateway, OECS EDU, Caribbean Exports, DSC

Immediately See global budget for quality

Extent to which practitioners adhere to internationally accepted contracting standards

Within 6 months all new contracts entered into must be written

Conduct sensitization and training of legal practitioners and music, A.V. and other producers in the sector


MOT, CISAC Members, Business Gateway, OECS EDU, Caribbean Exports, DSC

Immediately

Use of ISRC label for music recordings and ISBN number for publications

Full compliance by Y2 Sensitise sector to requirements


Composers Authors and Publishers Society of Barbados (COSCAP)

108



To increase value addition within the sector through development of appropriate packaging products and services

Quality of Websites

Use of e-commerce for distribution of music and film

Improvement in 3 Website that offer music and videos for sale

20% increase in sales via internet by end of year 1.

Training of webmasters to design website customised to cultural industries market

MOTELE Trade Assns, ICT programme

Y1 20,000



To achieve effective implementation of initiatives to increase export earnings from the music and film industries

Level of coordination within the TSN in implementation of initiatives for export growth in the sector

Engage sector stakeholders to ensure efficient implementation of initiatives

Membership of sector trade associations on the NEC

MOT MOFIN, Trade Assns, Cultural Div

Immediately Clarification of role of

National Cultural Council and Cultural Advisor with a view to streamlining policy management of the sector

MOCUL 2nd

Qtr

Strategic Consideration No10:Services Delivery Network – Quality and Capacity, Cost, Synergy and Coordination


To ensure that trade associations in the sector have the resources to coordinate and provide services required of them to support quality and

Professional associations - AMP, Dominica Calypso Association, (DCA) -with the competence to offer a range of advocacy and market information services to their

Number of services offered

Full coordination of support to the sector by AMP, DCA , DAME, VASOD and others

Support for organization of clusters within the sector

Cultural Division

MOT, MOCDEV, OECS EDU, Business Gateway, NEBI, ECCO, coalition of Services Industries

Y1 See global

Establishment of an umbrella organization to represent the sector organisations

Engagement of consultant to provide training.


109

Strategic Consideration No10:Services Delivery Network – Quality and Capacity, Cost, Synergy and Coordination


product development

members. Professional development training programmes for AMP, DCA, VASOD, DAME and others

Consultant Trade Assns in the sector

An outreach programme to strengthen collaboration within the SDN


DEXIA

Continue lobbying with Government- SSN, and regional organizations to get telephone companies to use local music in the online product sales offer, to increase IP compliance both within the SSN and in the wider public

Visual Arts Association of Dominica (VASOD)

DEXIA

Ratings of AMP, DCA and DAME by their client members.

Annual 20% increase in satisfaction rating

Conduct satisfaction level surveys among members of the trade Associations on an ongoing basis

DEXIA CSO

To start immediately

110

9.4: Sector Strategy: Natural Resources and Energy

9.4.1: Introduction

This sector consists of the water sub-sector, which is currently a small export sector; the geothermal, which is currently in the exploratory phase, but which is felt to have potential as an export sector; and quarry products, a small but expanding sector.

Dominica‟s exports of mineral and aerated water increased at an average 9 % per annum during 2003 – 2007 and were valued at US$ 357, 000 in 2007. Water exports, however, were not ranked among Dominica‟s principal items of exports in 2007 and represented 0.01 % of world exports. In terms of the direction of its mineral and aerated water exports, 35 % were consigned to the British Virgin Islands, 30 % to St Lucia, 10 % to Antigua, 8.7 % to St Vincent and the Grenadines, 5.9 % to Anguilla and 4.5 % to the United Kingdom in 2007 (CSO in NES Response Paper; ITC Trade Map). Dominica also supplies cruise ships with bulk water, valued at EC$ 300 000 annually.

To make an inroad into the world market, Dominica would need to compete with France, Italy, Germany, Norway, Canada, the United Kingdom, Georgia, Slovenia and others. The world market for mineral and aerated water was estimated at US$ 2.9 billion in 2007. France is the largest exporter, with consignments valued at over US$ 1 billion in 2007 and given the proximity of its overseas departments – Guadeloupe and Martinique – to Dominica; it constitutes a strong competitor to Dominica. However, because of Dominica‟s nature island reputation and excellent water quality, strong possibilities exist to carve out niche markets.

The market for mineral and aerated water, containing sugar or sweetening or flavoured, is large, being valued at US$ 6.5 billion in 2007. The main exporters are Austria, Germany, the Netherlands, France, Belgium, the United Kingdom and the United States. It is to be noted, however, that Trinidad and Tobago is the principal Regional competitor. Its exports of this product were valued at US$ 44.8 million and represented 0.69 % of world exports in 2007 (ITC Trade Map). It should also be borne in mind that most OECS countries have small, bottled water production plants. These are potential regional competitors for Dominica in the bottled water sub-sector. However, there appears to be scope for the development of a successful marketing strategy based on a brand that reflects the country‟s natural attributes. Table 1 indicates the leading importers of this product.

With regard to geothermal energy exploitation, Dominica has entered the exploratory phase, seeking to confirm the potential for a geothermal energy industry. Two sites with strong geothermal potential and currently being explored are Soufriere and Wotten Waven. It is anticipated that production capacity will be 100 megawatts, with 40 megawatts being transmitted to each of the French Departments, Martinique and Guadeloupe and 20 megawatts being supplied locally. The advantages of geothermal production have been cited as its base load power generation (“always on”), its relative inexpensiveness and its small environmental footprint. Its base load factor makes for operating capacities of 86 – 95 %, thus contributing to reliability and relatively low unit cost (http://www.altenergystocks.com/archives/2007...)

Neighbouring countries with an interest in or with potential for exploiting geothermal resources include Nevis, Montserrat, Saba, St Lucia and St Vincent and the Grenadines. This preliminary competitor analysis suggests that Dominica‟s export potential in this sub-sector is linked to developing markets that are in close proximity and which do not themselves have geo-thermal resources. However, the value chain analysis suggests

http://www.altenergystocks.com/archives/2007

111

opportunities (at the national level) for stimulating energy-intensive activities and for cost reductions in existing activities. It is expected that energy costs will decrease from the current US$0.27 per kWh to US$0.06 per kWh.

Exports of pumice sand and aggregates increased from EC$ 3.9 million or 3.7 % of exports in 2002 to EC$ 10.9 million or 11.2 % of total exports in 2007. While there are opportunities for expanding this export, its further development will hinge on reducing the negative impacts on communities and other sectors, as well as increasing the local value added.

World exports of pumice sand were valued at US$ 54.8 million in 2007 and the leading exporters of this product were Germany and Italy. Exports of pebbles, gravel, broken or crushed stone used for aggregates, were valued at US$ 1.7 billion in 2007 and the leading exporters were the United Arab Emirates, Germany, Belgium, Ukraine, the United Kingdom, Norway, France, Canada, Mexico and Malaysia. In terms of Caribbean competitors, the Bahamas‟ exports of these products were valued at US$ 26.9 million, accounting for 1.55 % of world exports in 2007. Montserrat is also an exporter of quarry products, utilizing the products generated by the volcano. Its exports of aggregates were valued at US$ 681 000 in 2007 (ITC Trade Map).

Table 9.4-1: Top Ten Importers of Mineral & Aerated Water, Containing Sugar or

Sweetening or Flavoured, 2007

Source:

ITC Trade Map in http://www.trademap.org/Country_SelProduct.aspx

9.4.2: Vision

A sustainably developed natural resources sector contributing to the attainment of national, social, economic and environmental goals.

Country Value Imported (US $ ‘000)

Quantity Imported (Tons)

United States of America 1 449 194 923 093

Germany 503 867 829 285

Belgium 489 219 690 105

Netherlands 368 697 748 695

France 363 296 526 665

United Kingdom 323 712 419 662

Ireland 274 234 329 853

Canada 167 782 186 539

Spain 146 977 7 573

http://www.trademap.org/Country_SelProduct.aspx

112



Good reputation as an eco-friendly tourism destination

Abundance of water resources

Excellent raw water quality

Abundant resources – quarry

Preliminary indications of a geothermal potential and good

prospects for developing clean energy

Proximity to main target markets (for geothermal energy exports) –

Guadeloupe and Martinique

Weaknesses

Gaps in legislation and regulation to manage the natural resources

Inadequate knowledge and capacity for exploiting the natural resources

Inadequate knowledge of the potential uses of by-products of the quarrying

process

Accessibility issues e.g. sites, roads, land ownership and terrain

Inadequate investment in appropriate distribution systems and infrastructure

(more critical in rainy weather)

Inadequate information on water flows at various time periods

Externalities from quarry exploitation impacting tourism, fishing and populations

Opportunities

To exploit the trend towards global environmental consciousness

and the search for mechanisms to combat global warming and

climate change e.g. the clean energy mechanism

To develop a brand based on Dominica‟s natural features to support

its exports of water and geothermal energy

To attract appropriate energy-intensive industries e.g. data storage,

light manufacturing, tourism and promote the

development/expansion of linked industries, based on a potentially

price-competitive and abundant energy source that is based on

clean energy

To exploit strong market potential for geothermal exports, based on

clean energy and price competitiveness

To exploit the strong market potential in quarry products

Threats

At risk to natural disasters that could disrupt the production and distribution

systems

At risk to piracy that could disrupt shipping, depending on the markets being

targeted

Competitor threat from established suppliers of bottled water

113

b. Potential Markets

Existing Products Further Market Penetration New Market Development

Bottled Water OECS, BVI, UK CARICOM, USA, Canada

Bulk water Cruise Ships International

Quarry products Anguilla, Martinique, Guadeloupe, T&T CARICOM

New Products Product Development Requirements Markets

Geothermal Capital investment, R&D & trained professionals; Martinique & Guadeloupe

Cosmetic exfoliates, polishes and abrasives

R&D, Investment Promotion CARICOM & International

Flavoured water R&D, infrastructure, quality assurance, market development

CARICOM

114

9.4.4: Value Chain Analyses

Current Value Chain – Quarry Products

Extraction &

Preparation

Pumice Sand

Gravel

Stone

Preliminaries

Site Selection

Verification of

Quantity

Negotiation of

Land Lease

Local

Transportation

Services

Producers of

Concrete

& Cosmetic

Products

Producers of

Concrete Products Engineers &

Contractors

Final Consumer

Sales

Barge/Conveyor

Belt

Storage

Transportation to

outside Markets

This is a small

sector selling

primarily to the

local market

Transportation

Import/Brokerage/Customs

115

Improve efficiency

Not enough is known about the properties of the materials and

potential uses of the by-products, Research into these might identify

greater scope for increased value added.

There should be a requirement that used quarries be replanted and

landscaped. These could be developed into recreational parks and

linked to attractions for locals as well as tourists.

Minimize leakages

Possibilities for increased use of local trucking services

Opportunities exist for creation of several technical level and

management positions for nationals

There is scope for bona fide foreign-owned firms to reinvest profits.

There is scope for putting in place an enabling environment to induce

reinvestment of profits in by-products

Add Value

This product can be distinguished from sea sand, which is no longer

thought to be a suitable construction input.

Quality assurance laboratory testing to be conducted by NCTE

The feasibility of developing products with an abrasive content could

be explored. Examples of this would be the use of pumice in cosmetic

exfoliates, pedicure exfoliates, in soaps, cleaning products and

polishes

Value Options: Quarry Products

116

Future Value Chain – Quarry Products

Extraction &

Preparation

Pumice Sand

Gravel

Stone

Preliminaries

Site Selection

Verification

of Quantity

Negotiation of

Land Lease

Local

Transportation

Services

Producers of

Concrete &

Cosmetic

Products

Engineers &

Contractors

Final Consumer

Sales

Barge/Conveyor

Belt

Storage

Export

Processing

Soaps

Cosmetic

Exfoliates

Polices

Concrete

Products

Wholesalers

Retailers

Distributors

117

Value Chain – Geothermal Energy

Interconnection

Domestic

Commercial

Power

Transmission &

Distribution

Transmission over

land to submarine

cable

Energy

Generation

R & D

Feasibility

Transmission to

Export Market

Local Interconnection

Domestic

Commercial

118

Value Options – Geothermal Energy

Improve efficiency

Invest in the training and upgrading of a cadre of professionals

Address land use/ownership, terrain and road network issues

Institute a policy to address finance for the development of the sector

Opportunity to address the high production costs faced by other sectors

Legislation being reviewed and formulated in the case of alternative energy & electricity supply

Energy policy formulation & planning are ongoing

PMU is being established

Possibilities exist for synergies between the geothermal sector and the manufacturing & agro-processing industries and the accommodation sub-sector, an important aspect of the tourist industry

Minimize Leakages

Opportunities for increased local procurement of certain professional services .e.g. administrative, land surveying, legal and engineering

This is a new sector and one, which requires large investments for the R & D and generation aspects. To ensure greater national value added, joint ventures between nationals and foreign partners would be desirable and should be encouraged. In addition, training and employment of Dominican nationals in a range of fields to service the sector is a requirement to ensure the realization of potential benefits to the national economy.

There is scope for bona fide foreign-owned firms to reinvest profits. Fiscal programmes to encourage re-investment should be formulated. Income Tax Act and Fiscal Incentives Act should be reviewed.

Clean Development Mechanism makes provision for the re-investment in the country of profits generated from carbon credits

Add Value

The clean energy aspect of the product is a distinct attribute that makes it attractive to neighbouring French departments – Guadeloupe and Martinique - and other regional markets. This attribute also makes geothermal production attractive to other sectors, including tourism

Geothermal energy exploitation offers possibilities to capitalize on strong buyer preference for a reliable and consistent supply of energy at an affordable and constant price.

The possibility exists for developing an energy intensive data storage sector, based on the availability of cheap energy sources. The possibility of producing matches (as a complementary product) can also be explored

Opportunity exists to explore: o the use of waste geothermal energy for water heating and cooling

systems, o fish farming which requires a certain temperature, o development of spas o a possible link between geothermal energy and hydrogen extraction

(from water) to power vehicles

Create Value Scope for expanding into value chains in associated sectors:

Tourism

Transportation

Agri-business

Manufacturing

Services e.g. data entry, telecommunications

119

Current Value Chain – Water

Distributors

Shipping

Bottling

Final Consumer

Sales Storage &

Distribution

Preliminaries

Determine sources &

available for

extraction

Determine water

quality

Retail

Suppliers

Bulk Sales to

Cruise Ships

Wholesale

suppliers

120

Value Options, Water Sector

Future Value Chain – Water

Improve efficiency

Collection of water flow data over minimum one-year period

Review of existing legislation and policies governing management and conservation of water resources; land use and management and enact Bulk Water Export Regulations under the Water and Sewerage Act.

Improvement in the infrastructure to enable increase in loading rate of water to tankers/ships

Opportunities exist for the private sector to play a role in the export of bulk water; to increase sales of bottled water and explore niche markets for flavoured water

Minimize Leakages

Opportunities exist for procurement of local contractors for infrastructure development; and Environmental Impact Assessment;

Identification of funding sources to encourage the participation of local entrepreneurs in the sector would lead to greater value retention.

Add Value

Distinct attribute based on very good raw water quality, minimal use of chlorine, sources located in national forest

Scope for production of flavoured water using the diversity of fruits found on the island.

Create Value

Scope for developing niche markets – Regional & International

Scope for involvement of farmers, hucksters, and manufacturing sector in provision of fruits/fruit concentrates for flavoured water.

Retail

Suppliers

Final Consumer

Sales Bottling Wholesale

Suppliers

Bulk Sales

to Cruise

Ships

Storage &

Distribution

Bulk Sales

for Export

Preliminaries

Determine sources &

available for extraction

Determine water

quality

Upgrade

existing

Infrastructure

Shipping

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9.4.5: OMTI Matrix

Strategic Consideration No. 1: The Development Gear of the Sector Strategy

Objective Measure Targets Initiatives Lead Support When Required

Create wealth, gainful employment & reduce poverty

No. of new and expanded projects

2 new projects per sub-sector: - Water: by end Y3; - Geothermal: - by end Y5 - Pumice: by end Y5

Initiate an aggressive, targeted investment promotion programme

IDA MOT, NEC; OECS/EDU; Private Sector

Y1 onward Water: EC$5M. Geothermal: EC$1B; Quarry Products: EC$10M

Number employed by skill

10 employees per project (new and existing) by end of Y4

At least 1 social programme per community supported by end Y3

Energy for jobs initiative launched (Mobilize persons for employment in the sector)

Sector MOEDU, MOENRG, MOT

Immediately EC$ 2.5M

Generate foreign exchange

Foreign exchange receipts

Water: 15% increase by Y2 & 50% by Y5

Geothermal: US$ 95 million per annum

Quarry products: 50% increase in the value of exports by Y2 (based on EC$ 40 per ton- the current export value)

Ensure the setting up of a system to monitor foreign exchange receipts to the sub-sectors

PMU MOFIN, ECCB

Y1

Generate revenue

Level of revenue generated to Government

Quarry products: at least 50% increase in royalties by end Y1

Engage relevant entities to undertake a review of royalty rate; ensure a % of royalties deployed in the community;

Cost-benefit analysis to assist price setting of the natural non-renewable resource

DEXIA MOFIN, MOLEGA

Immediately HR

Water: new revenue flow to Government from water extraction

Minimum of 5% on gross sales

Imposition of a royalty on water extraction

MOFIN MOT, MOLEGA

Immediately Existing HR

122

Strategic Consideration No. 1: The Development Gear of the Sector Strategy


Sustainable development of natural resources

Method of extraction;

Externalities (sedimentation, noise and air pollution, degradation)

Use of appropriate technology for minimization of environmental hazards by end of Y1

Review of existing legislation & enforcement of legislation; enactment of new legislation as deemed necessary from review;

Ensure transparency in conduct of EIAs

Physical Planning Unit;

ECU; Environmental Health; NEC MOLEGA, DBOS

Immediately HR

Strategic Consideration 2: The Border-in Gear of the Sector Strategy – developing the supply side e.g. capacity development and diversification and human resource development


To strengthen research & supply capability in the sector

Existence of research & testing facilities

National Centre of Testing Excellence commissioned by end Y1

Ensure Centre is timely operationalized

MOT DBOS, Produce Chemist Lab, Fisheries Div, MOHEAL, MOENRG

Immediately

To diversify the range of products available both by product and geography

New product lines for:

- Quarrying - Geothermal - Water

Quarry Products: Cosmetic exfoliates; soaps, cleaning products & polishes;

Geothermal: spas, water heating, fish farming, data storage & other energy-intensive industries

Initiate product feasibility and development research

Private Sector agencies

IDA NEC, MOT, MOAGRI, MOTOUR

End Y1 2million

Water: Produce a range of products under licence with foreign partners

Negotiate arrangements

Y1

Provide training in appropriate skills for development & management of the sub-sectors

No. of trained technical & professionals in sector

2 Electrical/Mechanical engineers trained by end of Y4;

2 geothermal experts by end Y4;

2 Civil/Mining engineers by end Y4; 2 Hydrologists by end Y4; 2 Lab. Technicians, 5 mechanical/electrical technicians by end Y3

Continuation of ongoing programme by Min. of Energy to provide internship training to qualified professionals for geothermal sector

MOENRG consult. with sector

MOEDU, MOAGRI, Physical Planning, DOWASCO

Y1 EC$2.5 m

123

Strategic Consideration No. 3: The Border Gear of the Sector Strategy: improving the business environment & minimizing the cost of doing business


To ensure a policy and legislative environment more conducive to the growth of the sector

Policy, Legislation & regulation in place, based on strong public-private partnership

Geothermal: Enactment of legislation by end Y2; Quarry Products:

Ongoing review of the Mining & Mineral Act and the Quarry Code completed by end Y1;

Water: Review of legislation for management & conservation of water, for land use management by end Y1;

Enact bulk water regulations by end Y1

Engage relevant resource ministries and White Paper taken to Parliament

MOLEGA MOENRG, MOLAND, MOAGRI

Immediately 300 000 (Legal & technical consultants) Carefully examine

location issues in decisions to grant licences for quarrying

Physical Planning Authority

Processing time (for services/applications) reduced by 50%

Review timeframes and processes

MOT IDA, MOFIN, MOLEGA, DAIC , DAPE

Immediately

Strategic Consideration No. 4: The Border-out Gear of the Sector Strategy – improving market access and exploiting export opportunities


To penetrate identified markets

Increased market share

Market research done by end Y1

Market share increased by 15% by Y2 and 50% by Y4

Develop marketing & promotion strategy based on distinct attributes

DEXIA MOT, MOFORA

Immediately 25,000

To develop a high profile brand for the sector that emphasizes Dominica‟s environmental attributes

Brand awareness & recognition

At least 50% of distributors in key target markets aware of brand by end of Y4

Mobilize the Trade Associations

Jointly develop the brand proposition consistent with National Brand

DEXIA w/ Trade Assns

MOT, Foreign Missions, DOWASCO, Agents

Immediately

To identify in-market distribution channels

Access to distribution network

At least 5 contracts entered into with distributors by end Y1

Identify the most appropriate distribution channels

DEXIA w/ Trade Assns

MOT, MOFORA, Agents

Immediately 5% of sales

124

Strategic Consideration No. 5: Trade support services – Export Competency Development


To develop export ready firms/entities

No. of training workshops;

No. of targeted interventions, e.g. Technical Assistance

2 Workshops per year on standards, technical barriers;

2 In-plant visits per establishment to provide assistance in packaging & presentation and quality assurance

Source technical assistance & funding for workshops

Extended outreach and advisory programmes for exporters

DEXIA OECS/EDU 2 Consultants (fees & per diem) Rental of Venue Miscellaneous expenses

To have exporters who fully understand export procedures and meet requirements

Availability of manuals on export procedure

At least 1 manual available at the NEC & online by end Y1

Embark on a sensitization campaign on the benefits of exporting and an export awareness campaign

Assign responsibility for drafting manual

DEXIA IDA, MOFIN, Customs, Stakeholders

Strategic Consideration No. 6: Trade Information


Ensure adequate information to inform development of the sector and to guide future strategies & activities

Level & type of information Available

Database system on no. of exporters, sales, no. of employees, wages & salary (monthly), to be in place by end 2

nd Qtr

Sensitize the IDA of the requirement and stipulate to firms

Create a web portal for firms to provide the data

DEXIA IDA CSO

Immediately

HR

Engage Min. of Finance to provide resources to the CSO to incorporate coverage of the sector in the Economic Statistics

MP

Provide information on markets, technical barriers, standards etc.

Sources & frequency of information flows

Monthly trade information bulletin by end of first 6 months

Provide resources to NEC for production of bulletin & for obtaining market information

MOT MOFIN, Stakeholders

125

Strategic Consideration No. 8: Quality Management


To ascertain & comply with market standards, health requirements

Compliance with ISO & other standards

All firms have met standards by end Y1

Sensitize clients on the standards & monitor implementation

Water: Environmental Health Mining: Physical Planning

MOT, ECU, DBOS

Immediately

Monitoring & control tools

All exporters certified

All batches of products certified

Provide training for staff of the DBOS in industry specific requirements

Water: Environmental Health Mining: Physical Planning

MOT, ECU, DBOS

Immediately

To meet market requirement with respect to environmental impacts

Method of extraction to be consistent with MEAs;

Externalities

Full compliance by end Y2

Review legislation & enforcement;

Enactment of new legislation as necessary;

Ensure transparency in conduct of EIAs

Physical Planning ECU Immediately

Certified Companies

50% certified by Y4

To establish laboratory facilities to enable product testing

Lab reports Inclusion in the NCTE of Testing facilities to address the needs of this sector (including testing by-products)

To ensure timely commissioning of Centre

NEC MOT, MOFIN, EU

Strategic Consideration No. 9: Trade Finance


To ensure provision of adequate and affordable finance

Availability of Export Credit Guarantee Scheme

Review of the ECCB scheme by end Y1

MOFIN

MOT Immediately HR

Access to capital for development of the sector

A line of credit established in the AID Bank by end of year 1 to facilitate partnership arrangements between national & foreign investors

Source low-interest funds for AID Bank

MOFORA Y1

126

Strategic Consideration No. 10: Other Trade Support Services


To develop efficient shipping/ transmission logistics

Type of freight facilities

At least 1 reliable freight service for bulk water in place by end Year 2

Water: Research to inform on most efficient mode of shipment (in terms of quality and cost)

DOWASCO MOENRG Immediately HR

Strategic Consideration No. 11: Strategy Support Network – network of public and private sector institutions to support export sector development


To have adequate representation by the sector in the NEC

Umbrella body created and represented at the NEC.

Sector association formed within 6 months

Convene a meeting of the Trade Associations to form a steering committee, to establish a fully functioning association

Trade Assns DEXIA Immediately

Strategic Consideration No. 12: Services Delivery Network – national focal point responsible for overall coordination


To ensure that agencies involved in delivering services to the sector are adequately resourced

Level of services provided by - DAIC - DAPE - Employers‟

Federation

Increase in coverage of the associations

Facilitate the associations in accessing resources

DEXIA MOT, NEC

Y1 onwards

Training/membership development opportunities increased by 10% per annum

Associations to conduct needs assessment

DAIC

At least 2 trade links forged with counterparts in other countries annually

All service providers‟ details to be disseminated to members of the sector association

DAPE

127

9.5 Sector Strategy: Professional Business Services

9.5.1: Introduction

A major benefit of developing professional services will be the creation of skills- intensive jobs, which tend to be higher paid and therefore provide a better return on the requisite investment in education by the individual or by the Government. Also, developing professional services creates new businesses and stimulates increases in number of skilled personnel. Importantly, the sector acknowledges the important role it can play with respect to sustainable tourism and land use

The professional business sector in Dominica includes the following subsectors- business development (BD) consulting firms, the ICTs, education and health services, accounting, legal and construction services. Of these, general construction work for buildings and for civil engineering codes 512 and 513, architectural services code 8671 and engineering services code 8672, using GNS W/120 classifications, were reportedly among those with the most potential to be targeted in this strategy. This focus is the result of a very systematic process of setting sectoral priorities, including value chain and value option analysis, and comprehensive literature review, which indicated these as the ones in which Dominica can most successfully compete within the targeted CSME and EU markets.

In all, an estimated 20 construction firms, 8 architecture firms and about 5 engineering firms are registered in Dominica with some having undertaken or participated in major projects outside Dominica on a sustained basis.

Rough estimates suggest that the professional services sector employs in excess of 20% of Dominica‟s labour force, led by construction and related services.

9.5.2: Vision

To export a Dominica building brand which highlights sustainability and environmental conservation principles.

128



Quality of service of professionals in the sector has generated some level of exports of construction and related services, and business development services

Existence of a highly trainable labour force

Central location in the CSME

Existence of Trade Associations in the sector

Weaknesses

Small size of businesses in the sector (Border In – Capacity Development)

Low productivity of labour (Border In – Capacity/HCD)

Inadequate focus on vocational and technical training in the formal school curriculum (Border In – HCD)

Predominance of unskilled workers and lack of sufficiently trained artisans and related professional services e.g. landscapers, painters, plumbers, electricians, carpenters, masons (Border In – HCD)

Inability of small firms to meet prequalification standards in given time frame (Border In – Capacity)

High cost and inefficient cross border transportation links cancels out benefit of central location (Border – Cost Of Doing Business)

High Customs duties and charges (Border – Cost of Doing Business)

Need for more transparency in procurement procedures (Border – Business

Facilitation)

Week enforcement of legislation and accompanying regulations (Border –

Business Facilitation)

Inadequate awareness of existing opportunities in target markets and specific consumer and buyer preferences (Border Out – Market Access)

Need for increased national standards development within the sector (Client –

Quality)

Very little statistics on export performance and growth trends to inform stakeholders and policy formulation for the sector (Client – Trade Information)

Opportunities

Market opportunities in the CSME (Border Out – Market Opportunity) Target markets are Barbados and Trinidad which will be pursued both through mode 3 -commercial presence, and mode 4- movement of natural persons

Market opportunities in the EU (Border Out – Market Opportunity)

Target market is the UK. These markets will be pursued through partnerships with companies in the market by mode 4 movement of natural persons to do work in the UK, Dominica or any part of the world

Threats

Lack of transparency in application of market access provisions in target markets (Border Out)

Lack of enforcement of application of market access provisions by implementing officials (Border Out)

129

Moves to achieve accreditation by leading global bodies for professions across the sector (Client – Quality)

Standards are international for engineers and architects and therefore enhance market entry opportunities in the EU CARIFORUM EPA (Client – Competency)

130

b. Strategic Options Based on the SWOT, strategic options for the sector must build up supply side capacity by addressing efficiencies and building up value and will include:

Approaches to benefit from market access opportunities within the CSME and the EU CARIFORUM EPA.

Interventions to address inefficiencies and skills gaps which negatively impact productivity on the sector

Initiatives to ensure clear understanding of certification and other target market standards requirements with respect to construction

Campaigns and missions to foster relationships and enter into strategic partnerships with firms in target markets

Initiatives to ensure transparency in application of market entry provisions of FTAs entered into.

The sector recognizes the important contribution it can make with respect to sustainable tourism development and sustainable land use and in this regard, the strategy therefore places significance on the developmental impacts.

c. Growth Trends Market environment and how they can be met

The world market for construction related, knowledge-based services, principally architecture and engineering, is estimated to be worth around US$600 billion. This market is highly concentrated geographically; the top 10 countries being the US, Japan, China, Germany, France, UK, Italy, Spain, Canada and the Netherlands. While in the past those markets have been mostly supplied locally, international trade in these services has exhibited an increasing trend in recent times, with services being provided either through outsourcing, partnership with foreign firms or through movement of natural persons.

In the region there is increasing awareness of the importance of services, not only tourism, as a contributor to economic activity and a recognition of the potential of the sector to broaden the region‟s export base, as the trends explained in the numbers above indicate . In this context, Dominica as part of its response to the banana shocks has more and more pursued policies aimed at developing this sector. One characteristic of this sector which augurs well for the priority sectors of focus in this strategy is the global trend of offshore outsourcing of the architectural, engineering and construction management functions. Dominican architects and engineers are already participating in this market and with the requisite capacity development support are expected to be

better positioned to participate in the CSME single space and so will the carpenters, masons and other associated tradesmen. Within the CSME, Barbados and Trinidad and Tobago have already expressed specific interest in importing construction tradesmen within the CSME under Mode 4 Movement of Natural Persons. The provision for market access for highly qualified natural persons in the EU CARIFORUM EPA has opened the EU market to Dominican architects and engineers specifically. The UK market has reported shortages and this may be very promising for Dominican engineers who can be cost competitive in this market.

This market environment and the growing importance of large, complex and prestige projects and the trend of outsourcing to cheaper geographical location will require relationship building with bigger firms in those major markets, and possibilities to work as representatives for larger companies better able to successfully bid on major projects.

131

9.5.4: Mapping the current value chain

Value Options

Improve Efficiency

Training to generate increased availability of trained painters, plumbers, electricians and landscapers in the private sector

Improvements to procurement systems in the public and private sector to ensure that dissemination of tender information is transparent and allows adequate time for small companies to prepare and use collaborative approaches to compete.

Better credit windows to facilitate small companies in meeting mobilization fund.

Increased use of subcontracting at all skills levels

Minimize Leakages

Joint ventures with local and foreign investors and collaboration with CSME companies could result in increased production of construction supplies in Dominica

Add Value

Support for creating a unique Dominican/Caribbean design

Create Value

Scope for increased supply of goods and services to the hotel and public sectors in Dominica and the region

Project

Implementation:

Modes 3 & 4

Transportation

Tender

Information Prequalification

process

Tender Award Project

Implementation

Project

Implementation:

Modes 1 & 2

Imported

Inputs

Local

inputs

Tender

Information

132


Project Implementation: Modes 3 & 4

Increased commercial

presence through

partnerships & increased

movement of professionals

& artisans to provide

services

Transportation

Tender

Information Prequalification

process

Increased

Success rate

Tender Award

Increased rate

of successful

tenders

Project Implementation

Enhanced customer

satisfaction

Project Implementation:

Modes 1 & 2

Including the efficient

use of E-Commerce

Imported

Inputs

Local inputs

Increased use of better

trained local labour &

other eco-friendly inputs

Tender Information

Increased

Availability &

Timeliness Better Access

to Credit

SQAM Services

& National Brand

133



To raise employment and reduce poverty as a direct result of increased export activity in the sector

The actual number of new unskilled (labourer level) and unskilled workers fulltime and part-time employed by the sector

An additional 200 labourers employed after Y1

An additional 100 carpenters, electricians, masons, plumbers employed on a part-time or full-time basis

Support to existing companies tendering on major projects within the CSME with: - early sourcing of tender dossiers

MOWKS MOFIN, Financial Institutions, MOT

By end of Y1

MP

- training of potential exporters in best practice procurement /bidding procedures/requirements

Consultant Y2 20,000

An agency to coordinate with the appropriate agency in Barbados and Trinidad for artisans and other skilled construction workers from Dominica required in those markets, to be better organized to provide those services under Mode 4: Movement of Natural Persons

Private business development firm

MOT 2nd

Qtr MP

To encourage more involvement of women as trade persons and professionals in the sector

Number of women participating in the sector as professionals and trade persons

10% of the workforce being women by Y5

Organise a campaign to sensitise stakeholders to maintain gender balance in the industry

Dept. of Gender Affairs

DNCW, DEF, Trade Unions, Educational Institutions, Trade Assns in the sector

Y2 MP

To minimize adverse environmental impacts and operations of

Complaints from stakeholders in tourism, agro-processing, fisheries and other

50% reduction end Y3

50% reduction by Y3

50% reduction by Y3

4 recycling sites by Y3

Review of existing legislation and accompanying regulations to ensure continued relevance.

A private legal firm

Physical Planning, MOLEGA, firms in the sector ECU, DHTA,

Y2 100,000

134



businesses in the sector:

- unregulated quarries

- dust pollution - method of

sewerage collection

- disposal of solid waste

- protection of the watershed

sectors regarding - silting level of

rivers - dust particle air

level monitoring - Water quality test

in coastal areas - No. of landfills

and recycling sites

Engage MoF to make budgetary allocation to the Physical Planning Unit or the ECU to monitor compliance with existing legislation and accompanying regulations

DEXIA Fisheries Div, DWA, MOHEAL, DHTA, ECU, Physical Planning Unit, Local Govt

Y1 MP

Measures to protect the watershed

Evidence of reforestation by year 2

Undertake a campaign to regulate clearing of forest lands

Dept of Forestry & National Parks

PPD, DOWASCO, Lands and Survey (L&S), MOAGRI.

2nd

Qtr

Provide resources to the Forestry department and Physical Planning Unit to enforce compliance

Secure resources to extend and Use Planning to other zones as was done for the Pond Casse area e.g. - Morne Diablotin area - Carib Territory and Castle Bruce - Vieille Case area - the Greater Portsmouth area - The south-eastern belt

MOFIN Donor community

By end of Y1

1,000,000 MP

Formulate an environmental charter that should become national policy

Y2 MP

135

Strategic Consideration No 2: The Border-In Gear of Strategy: Developing the Supply Side


Capacity Development: To develop supply side capacity within engineering, architectural and construction related services

Ability to scope and design successful project tenders

Quality of work performed

Delivery according to clients‟ specification

Productivity at the artisanal level

50% success rate by Y2

100% customer satisfaction by Y1

30% increase in exports of services by end of Y4

30% increase in productivity level by end of Y3

Establish an interagency competitiveness and productivity monitoring framework

DEXIA MOT, Trade Assns

3rd

Qtr MP

Ensure that tendering process on major projects within the CSME is more transparent by stricter adherence to best practice

MOFIN MOT Y1

Create a special incentives programme to upgrade technology - plant and machinery (e.g. ICF; in-situ concrete formwork)-of existing and potential exporters in the subsectors.

IDA Y2

Capacity Diversification: To diversify the export base into new, high value service lines

Actual number of new high value professional services being offered

Exports of at least 4 new service lines by Y2:

offshore technical drawing and quantity surveying services

development of new cost effective systems and modules that are easily mobile

Initiatives to facilitate Eco branded architectural services by:

Sensitize professionals to internationally accepted criteria to be met to be branded as eco-enabling architecture

Relationships/partnerships building missions to the following target markets Barbados, Trinidad and UK under mode 1 cross border mode 3 commercial presence, and mode 4 movement of natural persons

Trade Assns

DHTA, SHAPE, DCA, ECU, WEF, NEC

Y1 MP 50,000

Increase in digital exports of services

50% increase in businesses exporting services digitally, after year 1 of implementation.

Ensure that ongoing ICT development project targets at least 7 firms

DEXIA, Business Gateway

MOTELE, LIME, MOEDU, NEC

Immediately Ongoing

A programme to assist, based on needs, the 7 firms trained to develop professional websites.

Global estimate

Sensitisation programmes to encourage businesses to use the internet as a mode of services (Mode 1 cross border) specifically using the e-commerce platform to sell A&E services

MP

136



Establish a system for reporting data on performance of the sector

Human Capital Development: To raise the skills base within the sector and to promote entrepreneurship

Increase in number of training programmes in management competencies and entrepreneurship through the formal education system.

Re emphasis of the school curricula on commerce and entrepreneurship

Introduction of training in professional business skills including financial management, negotiating skills and entrepreneurship at all tertiary level training institutions by Y3

Strengthen vocational training curriculum at the DSC and secondary school level.

MOEDU DSC, MOT, Private Sector, UWI, Int‟l Universities, Private Training Institutions

2nd

Academic Year

MP

Encourage existing private training institutions to introduce more vocational training and courses in entrepreneurship.

DEXIA Immediately

Broadening and extending of the internship/ apprenticeship programme for the graduating classes of the DSC and the secondary schools

DEXIA MOT, MOWKS, MOEDU

3rd

Qtr

Introduce training in international best practice procurement procedures across skills and professions in the three subsectors

DSC MOEDU, Private Businesses

Y3 50,000

Number of tertiary level trained graduates – vocational and technical – entering the sector

Using baseline as Y2, 30% increase in Y3.

Programme to grant at least one scholarship annually in engineering, construction management, quantity surveying and architecture each year from Y2 for 2 years

MOEDU

DSC, UWI Y3 400,000

Engage private training institutions to introduce more vocational training courses and courses in entrepreneurship

MOT, Trade Assns

Immediately MP

Ensure that ongoing ICT development project covers all schools and achieves its objectives and assess need for follow- on ICT development projects

MOTELE Service providers

Immediately MP

Initiatives for professionals in the subsectors to access /keep abreast with the technological advancements in modes of services delivery

Trade Assns

DEXIA

137



Introduce new training/certification programmes at the tertiary level (DSC)targeting inadequately trained tradesmen - carpenters, electricians, masons, plumbers

MOEDU DSC, Private Training Institutions

Y3 150,000

Number of training courses in construction skills/vocations in the formal school system to attract aspiring investors

One course by the end of Y2

Introduction of a course covering the basics in the construction industry at the secondary school level possibly as practical case studies in subjects like mathematics, chemistry and physics

MOEDU Trade Assns Y2 10,000



Infrastructure To ensure that the infrastructure in the country is conducive to sustained improvement in the sector‟s export performance.

Convenience and accessibility of flights.

Road transportation time to airports reduced by Y2

Number of scheduled flights increased to facilitate mode 4 service delivery by Y2

Expedite implementation of airport road rehabilitation project

Negotiations for improved flight connections between Dominica and target CSME markets

MOPORT, Travel Agents, MOTOUR

MOT, DEXIA, Travel Agents, MOTOUR, MOPORT

2nd

Qtr

Ongoing

Encourage investments in continued airport development

IDA Ongoing MP

Increased supply of ferry services

One new service line servicing the OECS introduced by Y2

Initiative to place this on the front burner for attention at the OECS level

MOT Y1 MP

Increased efficiency of electricity and telecommunications, in particular internet, services.

90% reduction in unexpected power interruptions, and interruptions in internet services by Y2

Ensure that DOMLEC continues to upgrade its technology and invests in training of its staff to improve efficiency of its services generally

DOMLEC, IRC

MOT, MOENRG Y1 MP

138



Ensure that LIME continues to upgrade its technology and invests in training of its staff to improve efficiency of its services generally

NTRC

ECTEL, MOTELE

Enforcement of existing legislation and regulations viz:

Physical planning Act of 2005.

Architects Act

Engineers Act

A regulatory framework for the construction sector

Enforcement of legislation and regulations immediately

Sensitize policy makers to implications of non enforcement of laws and regulations to growth of the sector

Trade Assns in the sectors

MOLEGA Immediately

MP

Ensure transparency in enforcement of provisions the legislation and regulations

Physical Planning Unit

MOLEGA, Trade Assns in the sector

Access technical assistance to review legislation and draft amendments and/or new legislation/regulations

MOLEGA MOFIN, Builders and Contractors Association of Dominica (BCAD)

Y2 40,000

Trade Facilitation To minimize regulatory and procedural requirements within the sector

Level of transparency in enforcing trade requirements

Full transparency by Qr1.

Commission a short term consultancy to review existing requirements and make recommendations to ensure harmonization across CSME

MOT MOLEGA Immediately 30,000

Monitoring of implementation of EPA with EU to ensure reciprocity

CARIFORUM Secretariat

MOT Ongoing MP

Cost of Doing Business To minimize indirect costs

Duties on plant and equipment imported by construction and related enterprises

Progressive reduction in customs duties to 0% by end FY3

Review of duties MOFIN MOT, BCAD, Board of Architects, Board of Engineers

Y2 MP

139



Framework to allow more cost effective movement of industrial plant across borders

Hassle free and duty free movement of equipment to within CSME, by Y2 on a reciprocal basis

Raise the matter at a regional level

MOT

MOFIN, CARICOM 2nd

Qtr

Cost of electricity, internet and fixed line telephone

Reduction in cost of internet and fixed line services to be at least comparative to the most competitive rate in the OECS by Y2

Ensure increased operational efficiencies by LIME and DOMLEC to result in lower rates to consumers

ECTEL/ NTRC, IRC

BCAD, Board of Architects, Board of Engineers MOTELE, MOENRG, MOT

Immediately



To secure best possible access into international markets for Dominica‟s engineers, architects, QS, construction managers and related service providers in with specific

Increased level of work conducted in focus markets

Participation in 3 major projects in the CSME within 2 years and 3 projects representing UK firms

Develop the Dominica (eco) brand mark

DBOS DEXIA, MOT, Trade Assns

Y 2 150,000

Annual promotion visits to major companies in target markets targeting major firms in the industry to include organizing and providing technical support to targeted firms.

IDA End of Y1

50.000

Number of enquiries from overseas inviting firms/individual professionals in Dominica to collaborate with them on projects

10 enquiries by end of first 6 months

Organise and launch a CSME Construction sector trade show

Trade Assns DEXIA CARICOM, IDA

Y2 100,000

Establish enquiries recording system

4th Qtr MP

140



focus on Barbados, Trinidad, the OECS and the UK

Number of potential exporters who have been able to access capital to meet procurement standards for bidding on projects within the CSME

5 companies within 2 years

Include potential exporters in missions to target markets to build relationships with large companies in the sector


DEXIA By end of year 1

Strategic Consideration No5: Trade Support Services: Business/Export Competency Development


To ensure that managers and entrepreneurs in priority client categories have the competency profile required to achieve sustained market success

Increase in number of professionals involved in exporting

5 new exporting professionals by Y1

Targeted training in preparation of business development and promotion plans targeting export markets

Private Training Institutions

DSC and Trade Assns

Y1 MP

Level of training in international procurement procedures

Two training courses by Y1

Engage a consultant to conduct a training of trainers programme for staff of the various ministries

MOFIN Trade Assns Immediately 40,000



To ensure that coordinated and consistent information is made available to all categories of exporters in the sector

Availability of current procurement manuals/Guidelines from target markets

Manuals/Guidelines to be published by end of 1

st Qtr

Assign an officer at the DEXIA responsibility to source the documents and pass to the sector associations

MOT MOFIN, CRNM 2nd

Qtr MP

Availability of information on tenders in target markets (CSME and in the UK)

A market information system in place by 2

nd Qtr

Provide the Min of Trade with the necessary resources to access and disseminate information on open tenders in target markets on an ongoing basis

DEXIA, MOT

CARIFORUM 3rd

Qtr Ongoing

Liaise with CARIFORUM to set up a tracking system

DEXIA MOT MP

Level of statistics on number of firms/professionals and employees in the sector

Comprehensive baseline statistics available by end of Y1

Convene a meeting of the DEXIA, CSO and Trade Association to agree on a collaborative approach for sourcing/ compiling/dissemination of the statistics

DEXIA CSO, Trade Assns, Coalition of Service Industries

MP

142



To make concessionary finance, pre and post shipment, and investment capital available to all categories of investors

New credit windows

1 new concessionary credit facility available at the AID Bank by 4

th

Qtr.

Policy to prudently adapt risk management policies to support expansion of construction, engineering and architectural companies in the export sector

AID Bank MOFIN, MOT 2nd

Qtr MP

Establishment of a guarantee fund to facilitate access to credit by small construction firms in meeting pre-qualification requirements for major projects regionally and internationally

MOFIN MOT Y1

Availability of liability insurance in the local market

At least 1 insurance company offering a competitive package to industry professionals by end of Y1

Commission a short consultancy to advise on best package

MOFIN Trade Assns, Insurance Companies/ Donor

3rd

Qtr 50,000

Strategic Consideration No 8 : Trade Support Services: Quality


To ensure that service providers in the sector meet respective international standards and ensure quality of services provided

Certification and accreditation of service providers in the sector

Absence of uncertified/non accredited exporters and potential exporters in the sector by Y2.

Establish national standards that meet international best practice

DBOS Trade Assns in the sector, DEXIA

Y1

To establish a differentiated construction product for Dominica

Existence of a Dominica brand

Launch of the Dominica eco construction brand by Y2

Sensitise professionals to internationally accepted criteria to be branded as eco-enabling architecture


DEXIA, MOWKS, MOT

3rd

Qtr

Engage consultant to research and advise on branding best practice

Y2

Establish a task force to plan launch and promotion of the brand

Y2


143


To ensure that public sector agencies involved in policy making for the sector have a clear understanding of the needs of the sector and collaborate with each other in working with the sector in addressing challenges faced

Level of collaboration within the SSN: - Min of Trade - Min. of Education - Min of Public Works - Min of Finance - Min of Legal Affairs

Increased number of meetings within the SSN and between the SSN and the SDN

Appointment of a representative from the sector to the NEC

MOT MOFIN Immediately

Strategic Consideration No 10:Services Delivery Network – Quality and Capacity, Cost, Synergy and Coordination


To ensure that agencies involved in providing services to the sector are equipped to provide those services efficiently

Level of service delivery by: - DBOS - IDA - Financial Institutions - Dominica Association of

Professional Engineers - Building and Contractors

Association of Dominica - Dominica Society of

Architects

Enhanced delivery of services to members by 4

th Qtr

Support for establishment of a Secretariat to service all of the 3 Trade Associations – office space, computer, one secretary.

Coalition of Services Industry

Trade Assns, DEXIA, MOT

2nd

Qtr 60,000

Formation of an umbrella body to represent all trade association in the sector


DEXIA 2nd

Qtr MP

Increased involvement of members in respective Trade associations in the sector

Sector Stakeholders

Trade Assns 2nd

Qtr MP

144

9.6 Sector Strategy, Tourism

9.6.1: Introduction

There is no complete database on the number of people employed by the tourism sector in Dominica, or on the businesses in the sector, because a System of Tourism Satellite Accounts (TSA) for Dominica has not been established.

However, the following, obtained from the database of the DDA provide some indication of number of businesses in the sector based on business (certified and non certified) registrations as at April 2009: 98 accommodations; 11 tour operators; 371 taxi operators; 143 taxi drivers; 261 tour guides; 432 vendors; 16 hair braiders; and 18 vehicle rentals . Within the accommodation sector a total of 933 rooms are reported of which there are 371 export- ready (21 properties)

9.6.2 Vision

To be a key driver of economic growth and development by enhancing Dominica‟s green destination appeal by adding value to existing products and broadening the product range

145



Ecological and cultural resource base for developing a sustainable tourism product exists - strong experience tourism characteristics – unique natural, cultural and historical assets

Reputation of being a nature island

Reputation of being relatively un-spoilt and unknown

Known to be home to the last of the indigenous people in the Caribbean

As a relatively new entrant to the sector Dominica can benefit from experiences of mature destinations

The Government has designated Tourism as a priority sector for stimulating economic growth and diversification

Legislative and policy framework in place -existence of a long term master plan for development of the sector (Tourism Master Plan) and Existence of an Agro Tourism Plan

Potential for strong linkages with the agricultural sector

Ongoing standards development and certification drive in the sector

Existence of the boiling lake

Weaknesses

The Tourism Policy developed should be followed up with a plan that specifies responsible organization, budget resources needed, targets, among other indicators to allow for better monitoring of implementation and outcomes (Border In – Capacity Development)

Inadequate local tourism awareness programmes (Border In – Capacity

Development)

Lack of marketing skills by tourism service providers (Border In – HCD)

Management skills gaps among managers in the sector including the absence of business plans in guiding business development decisions

(Border In – HCD)

Inability to attract a higher level of investments into the sector (Border In)

Inadequate air and sea access (Border – Infrastructure)

Inadequate resources for promotion (Border Out)

Airports and seaports development are not providing appropriate ambience opportunities to market Dominica (Border)

A better partnership with airlines and major airport hubs is needed (Border –

Infrastructure)

Inadequate road and attraction signage (Border – Infrastructure)

Inadequate use of a brand/logo in the promotion drive by stakeholders in the sector (Border Out)

Need for substantial increases in resources allocated to promotion of the sector by the public and private sector (Border Out)

High rate of staff turnover within the SSN (Institutional Perspective)

Ad hoc planning due to limitations of staff, time, resources, finance, and lack of information sharing among key stakeholders

Limited financing and delays in providing funds breaks consistency of advertising, therefore hampering efforts to be consistently in the minds of potential visitors (Trade finance – capacity development)

Inadequate lay-bys on the island

146

Opportunities

Morne Trois Pitons National Park of Dominica has been designated a World Heritage Site by UNESCO

Increasing demand for a different tourism product, particularly “green” (responsible/nature-based) and adventure tourism in the market place

Global trend towards including services sectors in FTA negotiations

Increasing trend by donors to focus on the tourism sector in supporting Dominica‟s economic diversification drive

Opportunities to attract foreign direct investment into the sector under the EU CARIFORUM EPA

Threats

Impact, on travel industry, of constantly changing regulatory global regulatory infrastructure as a result of the threat of terrorism.

Possibility of prolonged impact of current global financial and economic crisis on the travel industry

Competing destinations in the Caribbean may move quickly and invest a substantially greater level of resources to offer a better-packaged experience tourism product to tourists.

147

b. Strategic Options Strategic options are guided by the Dominica Tourism 2010 Policy and Tourism Master Plan 2005-2015 as well as the revised summary version the New Horizons for Dominica Tourism prepared by the Tourism Ministry, and the Strategic Plan for Agro-Tourism

Development in Dominica.

Recognizing Dominica‟s rich cultural and ecological endowments as prime requisites to a sustainable tourism development path, Dominica‟s strong rural agriculture base and recent growth in global demand for experience tourism, the strategy views farm tours and health and wellness experiences as key components of Dominica‟s tourism product. Initiatives recommended, therefore, while addressing issues in the sector globally are expected to enhance the rural community impacts and linkages with the agriculture and agro processing sectors.

The strategy seeks to improve competitiveness of Dominica‟s tourism product by addressing the institutional framework, air and sea access, other infrastructure, costs and promotion issues, and the crosscutting human resource deficiencies.

c. Growth trends Coming from a small base, Dominica‟s tourism sector exhibited strong growth since the late 1980s albeit with mixed performances and an overall slower growth rate for the last decade. The following shows growth trends over the past 3 decades.

Table 9.6-1: Trends in Visitor Arrivals Category 1988 1990 1998 2000 2005

Stay over 34,282 45,087 65,501 69,598 79,258

Cruise 6,777 244,603 239,796 301,511

Excursionists 2,252 7,279 1,468 2,656 650 TOTAL 59,143 311,572 312,050 381,419

Category 2006 2007E 2008

E %∆98/88 %∆08/98

Stay over 84,041 78,000 79,000 91.1% 20.6%

Cruise 379,643 354,515 380,941 55.7%

Excursionists 926 880 978 -56.6% -33.4% TOTAL 464,610 433,395 460,919 47.9%

E: estimates

The arrival trends in the table above were driven by both internal and external factors. Internal factors already listed as weaknesses in the SWOT analysis above will be addressed largely by initiatives to enhance competitiveness and also product development through strengthened linkages with the agri-business sector, while building on the strengths through intensified promotion of the experience tourism, which Dominica offers. With respect to a response to external market factors, the strategy emphasizes increased allocation of resources to in-market promotion while addressing challenges with implications for cost of Dominica‟s tourism product. To add impetus to implementation of recommendations in this strategy coordination of a regional response of the sector to the current global economic crisis is recommended. Visitors to Dominica are attracted to its environmental attributes and are primarily experience seeking tourists. The strategy therefore seeks to meet the consumer preferences of those clients.

148


Local

Transportation

Taxis

Rental

Companies

Current Value Chain - Hiking

Local Amenities

Local Accommodation

Food & Beverage

Facilities Division of National

Parks

Trail Maintenance

Fee Collection

Security & Facilities

Tourism Authority

Website

Attendance at Trade

Shows

Marketing

Product

Development

Market

Representation

Travel Agents

Tour Operators

Associations

Transportation

Airlines

Ferry Service

Cruise Lines

Tour Guide

Local Tour

Operator

Transportation

Accommodation

s

Tour Guide

Community

Tour Guides

Souvenirs

Activities/Festivities

Accommodations

Food & Beverage

Hike Trails/

Attractions

149

Value Options

Improving Efficiencies

Training of tour guides in customer service and product knowledge

Public awareness on the importance of keeping hike trails clean and properly maintained

Need for more governmental support in securing reliable access methods to the destination

Need to develop and maintain a hiking trail system with public facilities, standards and standard operating procedures

Establishment of a National Parks Authority that would be solely in charge of maintenance of hike trails and other related sites

More governmental support towards community leaders to enhance the hiking sector

Establishing a Dominica TV Channel which would be viewed 24/7 in hotels, guesthouses etc which features all the hike trails and other related sites

DDA, Ministry of Tourism and other related offices to work closely with office in charge of hike trails and other related sites

Minimize Leakages

Need for training in product knowledge and customer service for tour guides

Need for training in first aid for tour guides

Labour policies to make provisions for use of local human resource

Policy to ensure that companies contribute to local communities in terms of building facilities and maintaining hike/trek trails

Add Value

Stressing the conducive topography of Dominica that is fit for hiking

Perform niche marketing research and direct marketing efforts towards the target market(s)

Group advertising and promotions among local tour operators and other service providers

Developing an “Eco-Challenge” product which will compliment hiking and other adventure activities

Create Value

Enhance training and marketing skills

Provide incentives to encourage investment in the sector

Establishment of independent/public sector agency/desk

Work in partnership with hotels to organize packages that include hikes

Encourage tour guides to form a Tour Guide Association in order to market themselves collectively

150


Future Value Chain – Hiking

The Local Tour Operator now plays a more of

A role in the activity from start to finish working with all

Stakeholders locally and cross border

Community The community is now an integral part of the visitor

experience providing most of the services during the trip

Souvenirs

Activities/Festivities

Tourism Authority

Website

Attendance at Trade

Shows

Marketing

Product Development

Certification Program

with DBOS (Quality

Development)

New Certified

Accommodations

& Services

Hospitality

Training Facilities

Local

Transportation

Certified Taxis

Rental

Companies

Local Amenities

Certified Local

Accommodation

Certified Food &

Beverage

Facilities

National Parks Authority

Better Trail Maintenance

Fee Collection

Improved Security &

Facilities

Certified Local Tour Operator

Transportation (Cross Border +

Local)

Accommodations

To Activities

Certified Tour

Guides Hike Trails/

Attractions

Market

Representation

Travel Agents

Tour Operators

Associations

Transportation

Airlines

Ferry Service

Cruise Lines

151



Employment Generation

Level of job creation

Creation of at least 20 jobs in the first year and at least 30 annually thereafter

Outbound migration rate by nationals reduced by 20% by end of Y3.

Undertake programmes to encourage investment in Tourism sector through: Additional special incentives packages for a

finite period. Outreach programmes to attract Dominicans

resident abroad to return to start businesses in the tourism sector

Publication of tourism statistics and information on Dominica‟s areas of strength that are underutilized

Programme to ensure efficient provision of utility services and road networks in rural areas

MOT DDA, MOCDEV, MOTOUR, MOEDU, DSC, MOENRG, MOWKS

End of Y 1 HR

Poverty Reduction

Income generated in areas with high incidence of poverty

50 new small businesses in rural areas supplying hotels and major restaurants with livestock, handicrafts, fruits and vegetables by Y2

Prepare an inventory of rural communities willing to participate in collaboration with Local Government, Community Tourism Groups, among others

Determine the type of support required by small rural businesses

Provide the village councils with support to undertake sensitization programs among existing, potential and aspiring producers on market opportunities within the tourism industry and on linkages between agribusiness and tourism.

MOCDEV MOT – SBU 2nd

FY HR

Rural Development

Level of linkage of the tourism sector with cultural

Linkage of 5 cultural groups, 5 agro processors and 10 farmers in rural areas with the

Establish a National Agro-Tourism Committee as recommended in the Agro-Tourism Strategy to engage stakeholders in the tourism sector to form partnerships with specific suppliers of goods and services in rural areas.

MOTOUR

MOAGRI, DDA, DHTA, IICA

Immediately HR

152



groups, agro processors, and farmers in rural areas

tourism service providers including but not limited to the Accommodation sector by end of Y1.

A campaign to ensure that rural areas are serviced by DOMLEC, DOWASCO, MARPIN, SAT, LIME, DIGICEL Orange, and others that may be licensed in the future.

MOTELE, MOENRG

Private & Public sector utility companies

Immediately Substantial Government & private sector commitment

Development of the Nationally Identified Disadvantaged Groups (Youth & Carib Indians)

Youth and Caribs engaging in tourism ventures

At least 5% of the new tourism sector employees and start-up tourism ventures in tourism are driven by the youth (between the ages of 18 – 30) and Carib Indians over the next five years (appx.3,300 now employed gives 165 persons)

Campaign geared at the youth and Carib Indians to promote awareness of benefits of the tourism industry

Development and implementation of local training programme

Scholarship/ skills training programs for youth at risk and Caribs

MOEDU Division of Youth DDA, DSC MOTOUR, Adult Edu (for lessons learnt)

Immediately 300,000

Environmental and Socio-Cultural Sustainability

Carrying capacity of environment & socio-cultural conditions enhanced to maintain integrity of natural & social history through enforcement of carry capacity guidelines for sites &

Publish Site/Attraction carrying capacity guidelines by Y2.

Information on site capacity and guidelines on service use available to public, particularly the service providers utilizing the resources, and guidelines enforced by 2

nd Qtr of Y2

and continuous updates to include

Determine existing efforts to measure carrying capacity

Establish carrying capacity per site/attraction, based on internationally recognized guidelines

Prepare and publish procedural guidelines for maximum use of sites and attractions and design usage relationship guidelines arrangement together with tourism service providers

MOTOUR, with the assistance of short term consultant

DDA Forestry, Wildlife & Parks Div, Local Government Dept

1st Qtr Y1 100,000

153



attractions newly developed sites and attractions annually

Effective management of the national parks system

Establishment of a single, autonomous, independent agency to manage the national parks system by Y3

Engage the Min. of Agric. to ensure timely commissioning of the National Parks Service, for which a policy decision has already been endorsed and support work of the joint Agriculture and Tourism Standing Committee

MOTOUR DDA, MOAGRI

Immediately HR

Level of recognition of the tangible and intangible heritage aspects of the tourism product

Continued restoration of the built heritage

Restoration of the French Quarter of Roseau by Y3

Train at least 2 individuals in heritage tourism annually over the next 5 years.

Develop the French Quarter of Roseau aggressively by : Engaging SHAPE to guide development of a

plan with budget Sourcing of funds Engagement of a construction management

firm Implementation and monitoring of

implementation of the plan

MOTOUR DDA, DHTA, SHAPE, MOFIN, MOEDU

To start by 2

nd Qtr Y1

600,000 HR

Investigation into possible designation and restoration of heritage sites around the island Y3

Engage SHAPE and others interested/trained in local history/anthropology to visit identified sites of historical significance. Following the model of the restoration of the Cabrits Nat‟l Park & Roseau French Qtr

Source/allocate funds to finance restoration

MOTOUR DDA, SHAPE, MOFIN, MOEDU

To start in Y3

HR??

154



To develop supply side capacity within the sector and strengthen linkages with other sectors: export ready

accommodation service/tour

quality

Level of compliance with existing minimum standards for accommodations, tour operators, attractions, restaurants & bars, vending and craft services, taxi operators

100% compliance with minimum standards after 3 years

Increase focus on service provider certification through PR campaigns

DDA DBOS, DHTA & other Tourism Private Sector Assns, MOTOUR

Immediately 180,000

Encourage allocation of funds under ALBA window to extend debt forgiveness of non performing debt held by AID Bank

Engagement of the AID Bank to make credit available to hotels at lower interest rates – maximum 6%

MOFIN

Embark on a sensitization program targeting appropriate staff at the Aid Bank to issues and income cycles of the tourism industry

Sensitize tourism service providers to the need for proper market and promotion planning

MOTOUR DDA, DHTA & other Tourism Private Sector Assns, MOFIN

Immediately HR

Increase in stay over arrivals

At least10% increase annually after the first 2 years for the first 5 years

Embark on a campaign to help hoteliers, tour operators, taxi associations, representatives of community tourism groups twin with successful operators in the region.

DDA MOT, Tourism Private Sector Assns

Over 1st 5

years 250,000

A selection process based on the destinations marketing plan, with guidelines to ensure that visiting travel agents, tour operators and travel writers are committed; and a system to get feedback from participants after visits

DDA MOTOUR, Tourism Service Providers

Immediately – before end of 1

st

Qtr Y1

HR

Reintroduce the promotion campaign to package the challenges of air access to Dominica as part of Dominica‟s experience tourism product, to be placed on the DDA Website

DDA

Tourism Service Providers, Travel Agents/Tour Operators

Immediately – 1

st Qtr Y1

10,000

Development and launch of a central reservation portal

DDA (Website)

800,000

155



New businesses and expansion of existing businesses

At least 10% increase in newly built export ready rooms after the first 4 years

Conduct an annual inventory of tourism businesses to monitor growth in rooms, restaurants and other tourism services

DDA

Central Statistics Office, Tourism Service Providers & Assns

Annually starting at end of Y1

HR

Organise a sensitization program to nurture a culture which encourages entrants to the accommodation sector to market their properties in advance of opening in order to secure income streams from onset of business opening

DDA & MOTOUR

Tourism sector stakeholders

Immediately HR

Support ongoing dialogue between Min of Tourism and AID Bank & other financial institutions to address financial challenges and viability of existing hotel plant and start-ups

Promote investment in tourism business expansion

IDA Financial Institutions MOFIN, MOT, DDA

Immediately

HR

5 new tour operators/service providers (including farm tours) established and certified each year

Evaluate and review existing incentives to the sector to provide tax relief in light of the current global financial crunch.

IDA MINTOUR Immediately HR

Grant of moratorium of 6 months to 1 year on principal and interest by AID Bank on loans to

Establish an official Agreement between AID Bank and the Government to include interest repayments in moratorium extended on loans to tourism service providers

MINTOUR IDA, MOLEGA, MOFIN

Ongoing HR

156



the sector by Y2

To diversify into new high value products

New hotel products that are not of the present style in Dominica (as detailed in the tourism master plan)

In addition to existing 930 rooms, 350 to 400 upscale rooms that are environmentally friendly with attendant amenities over the next 3 years

Develop an aggressive program to go out and attract investors to the accommodation sector by expediting completion and implementation of the National Investment Promotion Strategy

IDA DDA, MOFIN, MOT, Fin Inst. & Donor agencies

End of Y1 100,000

Effective functioning of “one stop shop” for investors.

IDA Min of Trade, Companies & Intellectual Property Office

Immediately HR

Construction of at least one flagship hotel in the north east of the island

IDA

Increase efficiency and transparency in processing of applications for incentives by revision of the Fiscal Incentives Act and accompanying Regulations so that applications for fiscal incentives do not have to be referred to Cabinet.

IDA MOLEGA 1st Qtr Y1

To raise the skills base within the sector and to promote entrepreneurship

Level of training of service providers in the sector within 18 months

An additional 200 persons certified – front office personnel, tour guides, room attendants, wait staff, food & beverage personnel by Y2

Engage DHTA to give priority to source/raise funds to support DSC in designing and running certification courses at all levels

Engage DHTA to create more training opportunities for members in: Culinary arts Tour development

Sourcing of trainers from CTO, CHTA, UNWTO, Florida Caribbean Cruise Association (FCCA)

DDA DSC, DHTA, MOTOUR, MOEDU, MOFIN

Starting Immediately

HR

Basic education level of service providers in the sector

At least 100 service providers graduating from the adult education program within

Embark on adult education programs targeting deficient service providers in the sector Taxi drivers and operators Tour operators and guides Hoteliers and staff Restaurateurs

Adult Edu Unit

DDA, DHTA, DSC

Starting 1st

Qtr Y1 HR & Training Facilities

157



12 – 18 months Hair braiders Vendors

Conduct the training $25,000

Level of management competency of service providers in the sector

20% of tourism providers who are deficient in the basic management skills entering focused management training programs within 18 – 24 months

Embark on an outreach campaign to sensitize service providers in the sector to appreciate the importance of training in management competencies

DSC, Adult Edu Unit, Other Tertiary Institutions

DDA, DHTA & Other private sector Assns, MOEDU

Starting 1st

Qtr Yr 1 HR

Engage the DSC and private training institutions to increase investments to provide training in the following areas: Pricing & costing Record keeping Relationship management Marketing Intellectual Property (IP) – trade & service

marks, & GIs Management/supervisory skills Training of Trainers Training in maintenance of hotel plant and

commercial grade equipment Events management and planning Risk management

Conduct training

Cost of Mgmt Level type training: 50,000

Strategic Consideration No 3 : The Border Gear of Strategy- Improving the Business Environment and Minimizing the Cost of Doing Business


Improvement of the physical infrastructure available to exporters in the sector

Condition of internal road network

Increased use of safety indicators and other traffic guides in road construction- more signs in place by Y2

A campaign to sensitize the Min of Works to include specifications and budgetary allocations for safety indicators in project designs

This campaign must incorporate efforts to get budgetary allocations for safety indicators on existing roads and streets

Traffic Dept & NEC

DDA, DHTA, private sector

Immediately – during the 1

st Qtr Y1

HR

158



A survey to determine where and which signs are needed based on internationally recognizable signs. Also costing of needs and identifying sources of funding should be included

Short term consultant engaged by MOWKS

Traffic Dept, Private Sector, MOFIN

Start by end of 1

st Qtr Y1

HR 10,000

Evidence of ongoing road maintenance programs

An urgent review of current road upgrade and maintenance programs

Improved timing and scheduling of road upgrade and maintenance programs in order not to coincide with major events on the tourism calendar

Short term consultant, MOWKS

DDA, Tourism Private Sector Assns

During 1st

Qtr Y1 HR 10,000

Campaign to sensitize the budget team in the Min of Fin. and Min. responsible for Public Works to the need to give more priority to budgetary allocations for road upgrade and maintenance

DDA Trade Assns in the sector

Dec Y1 (6mths prior to budget presentation)

HR

Level of accommodation of needs of the physically challenged in the general infrastructure

Prepare a TOR to conduct inventory of level of accommodation at financial institutions, service quality of all tourism service establishments including restaurants, sites and attractions, Govt offices particularly Min of Tour., DDA, IDA, and other public places

Engage a team to conduct the inventory and make recommendations

Sourcing of funds to : Undertake the consultancy Finance implementation of its

recommendations Develop and implement a sensitization

program to encourage the private sector to make the necessary financial investments in implementing recommendations

HR 250,000

Level and quality of information

Provision of more relevant information to tourists arriving at

Establish an interagency team comprising DASPA, DDA, DHTA to enhance tourism facilities at ports of entry

DDA DASPA, DHTA, & other private

Immediately HR Add‟n V.I.

159



facilities at the ports of entry

ports of entry on: Accommodation Taxis & tours Attractions &

activities General country

information including maps by Y2

Adopt an environmental charter to be visible at all ports of entry, tourist establishments, and to be enforced. (Highlighting Dominica as a carbon contributor)

Undertake a campaign to get better responses from operators in the sector, to calls for information by DDA.

DDA to compile a list of operators in the sector and make it available at the airport and other ports of entry

& public sector stakeholders, Min. of Tour., ECU

material: 10,000

Level of international air connections

Increase in efficiency of flight schedules on existing airlines & attracting at least one new airline service to Dominica by end of Y1

Engage Min responsible Ports to continue to aggressively pursue improved international access and construction of an international airport

Launch an aggressive negotiation campaigns to secure additional airlift space to Dominica –AA, LIAT and other regional & international carriers

DASPA MOTOUR, DDA, Private Sector Stakeholders

Immediately Fiscal Incentives to Airlines

Availability of ferry services between Dominica and neighbouring islands

Investment in an additional ferry service for the FWI, St. Lucia & possibly Antigua routes by Y3

Design an attractive incentive package and engage the private sector and stimulate interest and investment in such a ferry service

DDA IDA, Private Sector Stakeholders

Y2 HR Fiscal Incentives

Trade facilitation: minimizing regulatory & administrative bottlenecks faced by exporters

Delays caused by customs & immigration procedures at sea ports and air ports

Decrease turnaround time for arriving visitors passing through customs & immigration by 20 minutes by Y2.

Implement a customs luggage scanning system

Customs Dept.

MOFIN, MOT

Y2 100,000

160



Minimizing indirect costs of doing business in the sector

Efficiency of electricity services

95% reduction in unscheduled power outages by Y2

Undertake a campaign to get DOMLEC to improve maintenance of generation and distribution system A campaign to get DOMLEC to speed up investments in modernizing its technology

IRC MOENRG Immediately

Level of taxes paid by operators in the sector

A uniform VAT Rate for the tourism sector by Y3

Make representation to the Min. of Finance Trade Assns in the sector

DDA FY2 HR

Strategic Consideration No 4: The Border –Out Gear- Improving Market Access and Exploring Commercial Opportunities


To secure best access to regional and int‟l markets

Level of promotion of the sector by the public & private sector

2 promotional missions in Y1 organized & executed with strong public private sector partnership

Engage and sensitize small operators of the sector to place greater emphasis on promotion

Focus missions to major grow markets: US, Canada, UK & Europe – UK, France, Germany, Fr West Indies- and the Caribbean, the latter to drive increased arrivals during low season- August to October.

DDA Private Sector Stakeholders

Ongoing 0.5M

50 – 75% increase in private sector participation in current tourism trade and consumer shows by Y3

Train small operators in the sector who have not been exposed previously to participate in in-market promotion missions

Put in place a committee to select qualifying small operators

Financial support to assist operators participating /interested in attending shows

DDA Private Sector Assns, MOFIN

1st Qtr Y1

HR 10,000

Level of public sector financing of promotion of the sector

100% increase in annual Central Govt budgetary allocation to promotion of Dominica‟s experience tourism product Y2

Earmark a proportion of VAT revenue from the sector and or proposed levy on travel for financing promotion of Dominica and product development

VAT: MOFIN, Levy: MOTOUR

MOTOUR Y2

To provide the sector

Level of support

Involvement of the embassies, foreign

Provide resources to embassies/consulates to enable them to take on this responsibility.

DDA MOT, Diaspora

By FY 2 Provide Promotional

161

Strategic Consideration No 4: The Border –Out Gear- Improving Market Access and Exploring Commercial Opportunities


with a full service in-market advisory support

provided for in market promotions

representatives overseas & Diaspora organizations in facilitating in-market promotions Y3

Establish a contact within Diaspora groups to take on this advocacy and partnership role possibly free of charge on an expenses reimbursed basis

Groups, MOFORA

material

Increased physical presence in the market place –US/Canada and UK in addition to currently increasing presence in the virtual market place by Y2

Re-establish a promotion office in the US and the establishment of a UK office

DDA MOFIN FY 2 2,000,000

To establish a positive image and strengthen the sector competitiveness and export efforts

Level of coordination of Creole season activities

A statement pledging to combine promotion efforts by all events organizers during the season 3

rd Qtr Y2

Joint committee made up of representatives from DDA, DFC, Calypso Association & other event organizers to create unified calendar of events for Creole Season

DFC DDA, Event Promoters

1st Qtr

Y2 HR

Level of coordination of in-market promotion missions

Participation in 2 new annual trade shows in major markets, every year from Y2

Organizing and undertaking one major inter-sectoral promotion mission to major targeted markets – US, UK, Canada, FWI

Review existing show participation and consider new shows based on international recognition, and fit into National Promotional plan based on regional & international niche market focus

Engage operator participation in new shows, to include financial assistance where necessary

DDA Private Sector Stakeholders, MOTOUR, MOFIN

Starting Y2

HR 10,000

Increased # of familiarization trips organized by DDA and private sector

Increase in # of trips from Y2 as follows :

25% annually – DDA

10% annually – private sector

Review of current presence in market place through travel agencies/tour operators & publications

Invite interested travel agencies/tour operators for familiarisation trips

Consideration of interested travel writers who are featuring, Dominica, the Caribbean or similar destination

DDA, Private Sector Stake-holders

MOTOUR, MOFIN

Start Y2 HR 20,000

163



To strengthen the foreign language skills of stakeholders in the tourism sector

Ability to converse in French, Spanish & German

75% of stakeholders across the subsectors able to do business in at least two of the stated languages by Y4

Encourage stakeholders to participate in existing languages courses

Design Tourism focused language programs

DDA MOTOUR, educational facilities, Alliance Francaise, Venezuelan Embassy

Y1 100,000

Level of competency in customer relations and hospitality sector of front line immigration and customs officers

By end of Year 1 all officers in the pool should be trained

Training company/ consultant to conduct training

DHTA MOEDU, MOTOUR, MOFIN, DDA

2nd

Qtr 50,000



Current Exporters Creation of an integrated transparent communication system

Level of targeted product/service and market information disseminated to all client categories and policy makers in the sector

By end of Y1 dissemination (digital as much as possible) of quarterly one-pagers on recent market trends including major and emerging competitors, consumer preferences and summary arrival numbers, relating to:

Health and wellness tourism

Eco tourism

Cultural tourism

Prepare an inventory of the types of information disseminated.

Determine the type of information required for dissemination

Prepare an extensive listing database for dissemination of information to include a broad range of sectors both directly and indirectly involved in the tourism sector.

DDA MOT DHTA Taxi Assns DWA DMA Music industry

Immediately HR

Level of data to inform planning and policy making for the sector

Establishment of a Tourism Satellite Account (TSA) system by Y2

Drawing up of a plan of action (addressing the various components of the TSA), resource budget and sourcing of funds to commence work on the TSA

DDA CSO, MOTOUR, CTO, CARICOM Statistics Programme

Immediately HR 15,000

164



To increase availability of funds to hoteliers, guesthouse and villa operators, tour operators, and taxi operators

Level of concessionary credit facilities available to the sector, paying special attention to current potential and aspiring clients in the accommodation and transportation subsectors.

Number of loans extended to new entrepreneurs in the sector

Establishment of a special credit facility by each commercial bank and the AID Bank to make credit available to the sector at more attractive interest rates by Y2

Training of credit staff at financial institutions to better understand business cycles of the sector

Engage a short term consultant

MOTOUR 3rd

Qtr Yr 1

10,000 HR

Establishment of a special line of credit at the AID Bank to be capitalized from ALBA funds

Approach the Ministry of Finance to confirm amount earmarked from ALBA funds for this purpose

Strategic Consideration No. 9 : Trade Support Services : Quality, Labelling, and Packaging


To have all tourism sites and service providers certified

Compliance with provisions of the Tourism Standards and Regulations Act

Launch of new standards by 2

nd Qtr

Training for at least 25% of stakeholders in new standards developed, held by Y1 and another 50% by Y2

Establish a technical committee for development of standards for the sector

Organise and embark on sensitizing and training programmes for stakeholders, on implementation of measures and systems to meet standards

DDA DBOS, DHTA Immediately HR $10,000

To develop and monitor implementation of standards developed for all service providers in the sector

Number of standards developed endorsement and adoption of standards developed

To put in place a certification system for all providers of products and services in the sector

Certification system established for all 9 priority sectors

75% of existing hotels, guesthouses & villas certified by Y2.

100% of new hotels, guest houses & villas certified

75 stakeholders trained in quality management annually

75% of existing tour operators, tour guides & taxi operators certified by Y2

Organise training programmes for stakeholders in the accommodation subsector

Launch of the certification programme

DDA MOT, MOTOUR, MOLEGA, DBOS, DHTA, MOFIN, MOAGRI, Environmental Unit

Immediately HR Availability of funds for stakeholders to prepare for certification

165

Strategic Consideration No. 9 : Trade Support Services : Quality, Labelling, and Packaging


All new tour operators, tour guides & taxi operators certified.

All active sites and attractions certified by Y4

All of vending services certified by Y3 and thereafter on a continuous basis

50% of existing restaurants certified by Y3 and all new restaurants

All dive operators certified by end of Y1

75% of rental companies certified by end of Y2

To create a universally recognizable Tourism image

Development of a Dominica brand

Agreement on the Dominica tag line by all stakeholders by end of Y1

DDA to officially communicate with stakeholders recommending use of the logo

DDA to make use of the tag line/logo as a pre requirement for linking its website to websites of stakeholders

DDA MOTOUR, Tourism Stakeholders & Assns

Immediately HR



To facilitate and reinforce competitive-ness of the sector through

The level of collaboration and coordination in the areas of infrastructure development, promotion, and initiatives to enhance the sector‟s competitiveness.

Enhanced operational structures for management of the sector by end of Y1

Min. of Tourism to:

Ensure that persons appointed to technical positions have the requisite technical training and competence

Ensure that both DDA and the private sector are represented on the NEC.

MOTOUR MOT, DHTA, Private Sector Stake-holders

HR

166



enhanced collaboration and policy coordination within the sector‟s SSN.

Ministry of Tourism

Ministry of Finance

Ministry of Agriculture, Fisheries and the Environment

Division of Forestry, Wildlife and National Parks

Waitukubuli National Trail Project Management Unit

Ministry of Energy & Ports

Ministry of Telecommunications & Lands

Ministry of Trade

Ministry of Foreign Affairs

Ministry of Education

Ministry of Works and Public Utilities

Police Department

Ministry of Community Development, Gender Affairs and Information

Ministry of Carib Affairs

IDA

DDA

The private sector representative should be on a rotational basis with selection spearheaded by DHTA.

Review staffing structure of - Min of Tourism - DDA

Strengthened and fully resourced State College by Y2

Expediting of work of the task force already established to review tourism related programs.

DSC DDA, MOTOUR, MOEDU

Immediately HR

Allocation of necessary resources to implement recommendations from review

Urgent reactivation of the plan to build a tourism training institute as a section of the DSC

MOEDU MOFIN

167



To ensure that institutions leading support for competitiveness in the sector are adequately resourced and coordinated to perform as required

Appoint a task force to plan the establishment of a National Heritage Trust

MOTOUR/ Technical Specialist

Cultural Advisor

Immediately HR

Agency to nurture focus on environmental issues

Establishment of a full-fledged environmental management agency by Y2

Restructure and strengthen the ECU by:

Putting legislation and accompanying regulations in place

Putting in place a staff procurement system that allows the recruitment of persons with appropriate skills

Putting in place a training program to strengthen and enhance technical skills of existing staff

MOENV Cabinet Y1 HR & Budgetary Allotment

168



Level of information dissemination within the SDN

Dissemination of critical information among staff within each Service Delivery agency

Effective use of available human, financial and other resources: o Global

Environment Facility Small Grants Program/Dominica

o CTO o CHTA o DHTA o DWA o Dominica Marine

Organization o DAIC o DSC

Establishment by Y1 of an online library of national tourism documents to include:

tourism

forestry wildlife and national parks

agriculture

culture

Collaboration with CTO for support through its initiative in setting up a regional tourism library

Engage technical assistance for setting up a file archiving system for Min of Tourism, DHTA and DDA

Drawing up and revising existing job descriptions which focus on special skills of staff

Sensitization of managers/supervisors to ensure more effective use of staff appraisal systems

MOTOUR

DDA, CTO

Immediately HR

169

ANNEXES

Annex 1: Sectoral Contributions to GDP

SECTORAL CONTRIBUTION TO GDP (%)

Sector 2000 2001 2002 2003 2004 2005 2006 2007

P

Agriculture 17.96 17.51 18.33 17.69 17.76 17.12 16.88 16.00

Crops 13.76 13.08 13.60 12.90 13.06 12.41 12.22 11.29

Livestock 1.63 1.71 1.82 1.84 1.80 1.83 1.82 1.80

Forestry 0.75 0.79 0.84 0.84 0.82 0.79 0.76 0.76

Fishing 1.83 1.93 2.07 2.11 2.09 2.09 2.08 2.16

Mining & Quarrying 0.81 0.83 0.65 0.72 0.73 0.73 0.76 0.85

Manufacturing 6.86 6.19 6.37 6.42 6.40 6.22 6.03 5.80

Electricity & Water 4.31 4.64 4.92 4.82 4.93 5.07 5.05 5.12

Construction 8.10 8.26 6.47 7.21 7.23 7.23 7.56 8.48

Wholesale & Retail Trade 12.81 13.27 13.25 13.69 13.72 13.94 14.04 14.70

Hotels & Restaurants 2.56 2.48 2.52 2.44 2.65 2.73 3.02 2.87

Transport 9.79 9.65 8.84 9.39 10.03 9.73 10.02 10.46

Road Transport 5.58 5.43 4.67 5.35 5.74 5.56 5.66 5.75

Sea Transport 3.36 3.38 3.28 3.13 3.36 3.19 3.34 3.78

Air Transport 0.85 0.84 0.90 0.91 0.94 0.98 1.03 0.93

Communications 11.65 11.37 11.78 8.65 8.69 9.12 9.54 9.78

Banks & Insurance 12.81 12.93 12.83 13.29 13.56 14.33 14.34 15.13

Real Estate & Housing 3.43 3.61 3.84 3.92 3.88 3.88 3.91 4.11

Government Services 17.97 19.61 21.38 20.93 20.16 19.44 19.00 19.42

Other Services 1.31 1.40 1.55 1.52 1.51 1.55 1.54 1.58

Less FISIM 10.38 11.75 12.74 10.69 11.24 11.12 11.71 12.47

TOTAL 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

170

Annex 2: Summary External Account

Bop Average Balances (%) In Relation To GDP Average 1990 to 1995 Average 1995 to 2000 Average 2001 to 2006

Dominica Credit Debit Net Credit Debit Net Credit Debit Net

CURRENT ACCOUNT 60.9 79.4 -18.5 50.0 60.8 -10.8 55.3 75.7 -20.4

GOODS AND SERVICES 52.7 71.3 -18.6 42.6 50.3 -7.8 45.4 62.2 -16.8

Goods 28.9 53.8 -24.9 16.4 34.6 -18.2 15.5 44.4 -28.9

Merchandise 28.8 53.8 -25.0 16.1 34.6 -18.5 14.9 44.4 -29.4

Services 23.8 17.5 6.4 26.2 15.7 10.5 29.9 17.8 12.1

a. Transportation 2.6 8.9 -6.2 2.0 5.9 -3.8 1.8 7.9 -6.1

b. Travel 13.9 2.6 11.3 13.7 2.5 11.2 19.5 3.3 16.2

c. Insurance Services 1.6 1.9 -0.3 0.8 1.3 -0.5 0.7 1.9 -1.2

d. Other Business Services 4.5 2.8 1.7 8.7 4.2 4.5 7.4 3.7 3.7 Income 1.7 5.7 -4.0 1.3 8.5 -7.2 1.4 10.9 -9.5

Current Transfers 6.5 2.4 4.1 6.1 2.0 4.2 8.5 2.6 5.9

CAPITAL AND FINANCIAL ACCOUNT 24.1 4.3 19.9 17.7 6.0 11.6 31.8 13.7 18.1

CAPITAL ACCOUNT 6.9 0.8 6.1 3.7 0.2 3.5 7.8 0.0 7.7

FINANCIAL ACCOUNT 17.2 3.5 13.7 14.0 5.9 8.1 24.0 13.6 10.4

1. Direct Investment 9.1 0.0 9.1 3.9 0.6 3.3 9.9 1.3 8.6

OVERALL BALANCE 0.0 0.0 1.4 0.0 0.0 1.4 0.0 0.0 2.4 Source: Extractions from ECCB BOP Annual Publications

171

Annex 3: List of Core Design Team Members

No. Title First Name Last Name Company Name Address Line 1 Address Line 2 City Email Phone/Fax

1 Dr. Steve John Dominica Bureau of Standards

Great Marlborough St

Roseau [email protected] 440 0252

2 Mr. Michael White Custom & Excise Division

Woodbridge Bay Fond Cole [email protected] [email protected]

449 1199 266 3717 266 3739

3 Mr Ronald Knight National Development Foundation of Dominica

Great Marlborough St

Roseau [email protected] 448 8631 448 3240

448 0225 fax

4 Mr. Jonathan Vidal Dominica Hotel & Tourism Association

Castle Street Roseau [email protected] [email protected]

440 3431 440 3430 235 2375

5 Mr. Cecil Joseph Dominica Hucksters Association

Fond Cole [email protected] 448 3258

6 Mr. Leonard Bedneau Dominica Association of Industry and Commerce

Castle Street Roseau [email protected] 449 1962

7 Mr. Raymond Errol Julian

Austrie Emmanuel Elwin

Dominica Banana Producers Ltd.

Hanoulst House Goodwill Road Roseau [email protected] [email protected]

448 2671 275 1996 235 2671

8 Mrs. Mathilda Jno. Rose Agricultural Industrial and Development Bank

Cnr. Charles Avenue & Rawles Lane

Goodwill

[email protected] [email protected] [email protected]

448 2853 448 4903 245 7441

9 Mr. Mr.

John Royston

Robin Daniel

Dominica Chamber of Agribusiness

C/o Benjo Seamoss

Canefield Industrial Estate

Canefield [email protected] 448 1650

10 Mr. Patrickson Seaman Harris Paints Dominica Ltd.

Canefield Industrial Estate

P.O. Box 1999 Roseau [email protected] 448 3000

11 Mr. F.O. Riviere National Association of Non-Government Organization

C/o Dominica Save the Children Fund

P.O. Box 169 Roseau [email protected] [email protected]

448 4872 616 4872

12 Mr. Stephen Lander Bankers Association C/o National Bank of D/ca

Hillsborough Street


mailto:[email protected]



















172


13 Mrs. Prayma Carrette Central Statistical Office Financial Centre Kennedy Avenue Roseau [email protected] 266 3405

14 Mrs. Cornelia Williams

WHITCO Consulting Management Business & Organization Development

P.O. Box 2130 Cnr Hillsborough St & Great George St


15 Ms. Careen Prevost Dominica State College Stock Farm

[email protected] 276 3668

16 Mr. Irvince Reynolds AMERIJET International Dominica

C/o Auto Trade Canefield [email protected] 277 6490

17 Mr. Mr.

Benoit Manly

Bardouille Charles

Dominica Air & Sea Port Authority

Woodbridge Bay Fond Cole [email protected] or [email protected]

448 4431

18 Mr. Kertist Augustus Waterfront & Allied Workers Union (WAWU)

Hillsborough Street

Roseau [email protected] 448 0086 4482343

19 Ms. Cyril Dalrymple Dominica Employers Federation

14 Church Street Roseau [email protected] 448 2314

20 Mrs. Rhoda Letang Invest Dominica Financial Centre Kennedy Ave Roseau [email protected] 448 2045

21 Ms. Kathleen Cuffy Discover Dominica Financial Centre Kennedy Ave Roseau [email protected] 448 2045

22 Ms. Marvelin Ettienne Dominica Electricity Services Ltd.

18 Castle Street Roseau [email protected]

255 6155 235 8829

23 Mr. Alwin Bully 8 Fort Lane Roseau [email protected] 448 2454 277 3971

24 Mr. Craig Nesty Cable & Wireless (Dominica) Ltd/LIME

Hanover Street Roseau [email protected] 255 3269

25 Mrs. Patricia Dominique P.W. Bellot & Co Ltd. Castle Comfort [email protected] 448 2860 448 2862

26 Mrs Gwennie Dickson DOWASCO High Street Roseau [email protected] 448 4811

27 Ms Helene Pascal P.H. Williams & Co. Ltd. Rockaway Canefield [email protected] 449 1112

28 Mrs. Catherine Ormond WINFA [email protected] [email protected]

277 5561 448 4001

29 Mr. Tom Lafond Tropical Shipping Goodwill Rd Roseau [email protected] 448 1744

30 Mr. Winston Magloire Ministry of Agriculture, 2nd Floor Kennedy Avenue Roseau [email protected] 2663810

mailto:[email protected]/[email protected]





















173


Mr. Adisa Trotter Fisheries & Forestry Government Headquarters

266 3804 266 3805 266 3814

31 Mr. Samuel Carrette Ministry of Finance and Planning

5th Floor Financial Centre

Kennedy Avenue Roseau [email protected] or [email protected]

266 3216

32 Mr. Edward Henderson Ministry of Tourism & Legal Affairs

3rd Floor Government Headquarters

Kennedy Avenue Roseau [email protected] 266 3002

33 Ms Christine Magoya Ministry of Trade, Industry, Consumer & Diaspora Affairs

4th Floor Financial Centre

Kennedy Avenue Roseau [email protected] 266 3510

34 Mr Garner Eloi Dominica Essential Oils & Spices Cooperative Ltd.

2 Jewel Street Box 378 Roseau [email protected] 448 2969 4403843

35 Mr Mr

Karl McCaskey

Duncan Lancelot

Independent Regulatory Commission

42-2 Kennedy Avenue

PO Box 417 Roseau [email protected] 440 6634

36 Mr Lloyd Pascal Environmental Coordinating Unit

Roseau [email protected] 448 4577 266 5256

37 Dr. Charles Corbette Ministry of Carib Affairs 7 King George V Street

2nd

Floor Raffouls‟ Building

Roseau [email protected]

449 8132 4482401

ext.3377/3557 245 0377

38 Dr Clayton Shillingford Dominica Academy of Arts & Science

Checkhall Roseau [email protected] 449 2412

39 Mr McCarthy Marie Association of Music Professionals

PO Box 152, Roseau [email protected] 235 3438 448 3438 615 6518

40 Mr Joffre Green Board of Architects 9 Hillsborough St Roseau [email protected] 448 2336 612 2860

41 Mr Wendell Lawrence Board of Engineers [email protected] 449 3882

42 Mr Stuart Delbert

Paris Paris

Builders and Contractors Association

Weirs Marigot [email protected] [email protected]

445 8680 235 9955 235 7433















174


43 Ministry of Education [email protected] 448 2401 266 3256

44 Mr Joseph Isaacs Business Gateway Roseau [email protected]

45 Ms Jennifer Aird Dot DM Corporation P O Box 2102 [email protected] [email protected]

449 9681 448 1531 235 7700

46 Mr. Ms

Leo Martha

Casimir Joseph

Dominica Social Investment Fund

[email protected] [email protected]

275 2940 440 5939 225 8800

47 Mr. Alex Bruno Dominica Calypso Association

[email protected] 448 2539 245 2539

48 Ms. Sandra Julien Registrar of Companies [email protected] [email protected]

266 3353

49 Ms Anita Bully Dominica Film Office Discover Dominica

Financial Ctr Roseau [email protected] 448 2045 276 7584

50 Mr. Richard Allport Ministry of Agriculture [email protected] 266 3810 225 8066

51 Mr Richard Charles Richie‟s [email protected] 276 7776

52 Ms Vanessa Prevost Career Development Training

Prevost Cinemall Old Street Roseau [email protected] 440 5750

53 Dr Mr.

Valda Daryl

Henry Bobb

VF Inc Top Floor 37 Cork Street Roseau [email protected] 449 9649

54 Mr. Sobers Esprit Ministry of Tourism and Legal Affairs

14 Church St. Roseau [email protected] [email protected]

440 6757

55 Mr. Darwin Telemacque Tropical Farm Produce Ltd.

Marigot [email protected] 245-4247

56 Mr Daryl Bobb Music Consultant Roseau [email protected] 449 9649 235 7800

57 Dr Sylvia Charles Private Consultant Savanne Upper Copthall [email protected] 448 8521

58 Mr Matthan Walter Ministry of Trade, Industry, Consumer and Diaspora Affaires

4th Floor

Financial Centre Roseau [email protected]

266 3265 277 3010





















175


59 Ms Amber Rolle Wacky Rollers (WRAVE) Ltd

8 Fort Lane Roseau [email protected] 4498276

60 Dr. Eisenhower Douglas Director of Trade & Economist

4th Floor

Financial Centre Roseau [email protected] 266 3266/65



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